FCA crypto investigations have risen by seventy-five percent (75%) in the United Kingdom, as reported by the UK Financial Conduct Authority (FCA). This rise reflects the increasing tightening of the crypto sector regulations in the country.
With scrutiny on the rise, more than 87 crypto companies were under the lens this year compared to a mere 50 in the year 2018. As per Pinsent Masons, a global legal company, such as increase, depicts the way the U.K. is viewing cryptocurrency-related firms, especially after July’s renewed crypto regulations.
FCA crypto investigations shows a no-nonsense approach
The increase in crypto investigations shows that FCA is getting serious about regulations. This no-nonsense approach will undoubtedly lead to tight law enforcement. On the contrary, it will boost the country’s standing since the lawfully conducted crypto business will certainly attract the right investments.
The latest statistics are certainly encouraging for the investors looking to participate in clean crypto trades that don’t involve ad actors. The FCA’s crackdown will instill substantial confidence in crypto players operating under its jurisdiction. It will also ensure that customers won’t have to deal with scam products.
Indeed most cryptocurrency firms don’t have to worry about anything. They should be grateful that FCA crypto investigations are helping improve the industry standards.
Crypto scams on the rise in the United Kingdom
That being said, crypto scams still rear their ugly heads now and then. As more people are enticed towards this sector, some bad apples will certainly create issues. Recently, Twitter shut down the controversial mention of terms like ‘money flipping schemes.’ The scammers sometimes use fake celebrity accounts to lure investors into contributing a small sum of crypto in return for huge returns.
As per London police, approximately seventy-five thousand pounds (£74,000) are lost by gullible investors in crypto-related scams every day. These are substantial numbers by any means.
No wonder FCA is considering banning cryptocurrency derivatives. FCA’s wrath will certainly impact the rather small cryptocurrency derivatives market that is still in the nascent stage globally. It will have a direct bearing on the exchange-traded notes, options, and crypto futures trading.
The watchdog is sure to face substantial backlash if it implements such steps. A UK based exchange, Coinshares, even wrote to FCA that comprehensive research must be undertaken before taking such a step. It will be interesting to watch how FCA strikes a balance between crypto regulations and industry growth.