UK Financial Conduct Authority Investigates ‘50’ Firms Over Cryptocurrency Non-Compliance
Twice the number of crypto-related businesses are getting scrutiny from the U.K. regulator now as compared to May.
Responding to a Freedom of Information request by the publication, the Financial Conduct Authority (FCA) said it was currently eyeing 50 entities which it “suspected” were offering financial services without its permission.
While not quoting the response itself, the Telegraph referenced an accountant who suggested the continued downturn in cryptocurrency prices was indirectly pressuring on the FCA.
“The huge sums lost as a result of cryptocurrency prices falling this year will have triggered a rash of complaints to the FCA,” Moore Stephens partner Andrew Jacobs said, adding:
“Now that prices have collapsed, fraud is likely to be exposed, with greater pressure coming to bear on the FCA to ensure that this market can operate transparently and fairly.”
As Cointelegraph recently reported, the regulator has signaled its intention to adopt a heavy-handed approach to cryptocurrency as it appears in the financial services industry.
FCA executive director of strategy and competition Christopher Woolard said in a speech last week:
“We’re concerned that retail consumers are being sold complex, volatile and often leveraged derivatives products based on exchange tokens with underlying market integrity issues.”
The approach has already received scorn from some parties, who describe it as a “blunt instrument approach.”
However, the falling crypto prices has also eased the pressure on the U.K.’s financial regulator to introduce hasty new rules for the sector, Cointelegraph reported last week.