UK’s FCA Monitoring 50 Firms Over Crypto Regulations

Karan Balwani

November 27, 2018 11:24 am

Cryptocurrency News

UK’s FCA Monitoring 50 Firms Over Crypto Regulations
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The financial regulatory authority in the United Kingdom has been keenly observing cryptocurrency businesses that are running unlicensed operations. This news was reported by The Telegraph on November 26th.

The Telegram invoked the Freedom of Information request to the Financial Conduct Authority (FCA), saying that 50 entities are offering financial services without authorization.

As per the report by FCA, the number of companies under investigation has doubled since last year. The U.K. seeks to follow an orderly approach towards the cryptocurrency industry.

The Telegraph referred to an accountant without naming the source that the increased pressure is due to the falling prices of cryptocurrencies.

Andrew Jacobs, Partner, Moore Stephens said

“The huge sums lost as a result of cryptocurrency prices falling this year will have triggered a rash of complaints to the FCA. 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.”

The U.K. authorities are discussing the possibility of imposing a ban on certain categories of financial products.

Christopher Woolard, Executive Director, FCA, said in a speech

“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.”

This news was originally published on CoinTelegraph.

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