UK Financial Conduct Authority Investigates 24 Crypto Firms

News, Regulation | May 28, 2018 By:

The UK Financial Conduct Authority (FCA) is currently conducting investigations into 24 different crypto-related businesses over financial regulatory compliance.

In response to a Freedom of Information request by an accountancy and consulting firm, the FCA said that the 24 unnamed crypto firms under investigation are unauthorized. The investigations were being made to determine if they are conducting activities that require regulation. The FCA’s response also confirmed that it had opened seven whistleblower reports since the start of the year.

“If we conclude that they are, then we may investigate and take action, identifying and determining the most serious matters which pose the greatest risk to consumers,” the FCA said. “The FCA will continue to monitor the appropriateness of the existing regulatory framework.”

In its response, the FCA clarified that not all cryptoassets are within its regulatory perimeter. But unauthorized crypto firms that are under its jurisdiction could face criminal prosecution and insolvency proceedings.

In March of this year, outgoing FCA chair John Griffith-Jones warned that while cryptocurrencies were advertised as “alluring investments,” they “have all the potential of causing consumer harm unless brought within the regulatory perimeter.”

Last month, the FCA announced that it will be collaborating with the UK Treasury Committee and the Bank of England to draft a discussion paper on various aspects, risks, and opportunities presented by cryptocurrencies.