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UK financial watchdog is investigating 50 unauthorized crypto firms

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As part of its attempts to crack down on unregistered crypto firms, the Financial Conduct Authority (FCA) of the UK has announced 50 current investigations.

The FCA announced on Thursday that it had initiated more than 300 cases in the previous six months against unregistered crypto companies, “many of which may be frauds.” Furthermore, the country’s financial watchdog announced that it was pursuing 50 ongoing investigations into permitted crypto firms, some of which might lead to criminal investigations.

In fact, between April and September 2021, the FCA received 16,400 queries from U.K. residents. Many of which had connection to cryptocurrency frauds. Moreover, the agency said it would use “more robust supervision and enforcement action”. As well as “being stricter with enterprises that wish to operate” in the UK.

The financial watchdog began public discussions on suggestions in January. Including the application of its financial promotion regulations to “high-risk investments, including crypto-assets”. Feedback will be accepted until March 23rd by the group.

To operate for UK-based customers, cryptocurrency exchanges and organisations that provide crypto-related services must register with the FCA. According to reports, out of the roughly 200 companies that submitted, 32 acquired approval as Registered Crypto Asset Service providers as of Feb. 23. Uphold and eToro’s U.K. subsidiaries, as well as Light Technology, have received crypto licences from the regulatory body this year.

Other regulatory organisations in the United Kingdom have taken action against crypto companies. Typically equating the field with unlawful transactions and other activities. In December, the country’s Advertising Standards Authority prohibited commercials from six major crypto exchanges. Calling one by Coinbase’s European office “misleading” and another by Kraken operator Payward “financial risk-free.”

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