The U.K.’s Financial Conduct Authority (FCA) has reportedly provided an update of its investigations of crypto companies. A total of 67 inquiries were launched, 49 of which have been closed, leaving 18 businesses currently under investigation. The UK government has reportedly said it is ready to give power to the FCA to regulate the crypto industry.
Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations
The Financial Conduct Authority on Sunday confirmed it was investigating 18 businesses involved in the sale of cryptocurrencies such as bitcoin. The regulator has also issued alerts and warnings about dozens of companies suspected of cryptocurrency investment scams.
In May, the FCA investigated 24 crypto firms. In November, The Telegraph reported that the number of unauthorized crypto companies the regulator suspected of operating in the financial services industry jumped to 50, citing information from a different FOI request. In addition, the regulator has received seven whistle-blowing reports from employees of crypto businesses this year, whereas it did not receive any in the previous three years.
While cryptocurrency transactions are currently not regulated in the U.K., companies that sell regulated investments with cryptocurrencies as their underlying assets may need approval from the FCA. However, “it is currently unclear in some instances whether certain assets fall within the scope,” the news outlet noted.
John Glen, Economic Secretary to the Treasury, explained that the government will discuss whether crypto assets that “have comparable features to specified investments but that fall outside the current perimeter” should be regulated, the news outlet quoted him as saying. Glen further detailed:
Subject to the outcome of this consultation, the government stands ready to legislate to expand the regulatory perimeter to ensure that FCA regulation can be applied to all cryptoassets that have comparable features to security tokens, regardless of the way they are structured.
Furthermore, the FCA said in October that it is considering banning the sale of crypto derivatives. In November, news.Bitcoin.com reported that the regulator indicated that a “comprehensive response” to the illicit adoption of crypto assets is being planned.
What do you think of the U.K.’s FCA investigating all these crypto companies? Let us know in the comments section below.
Images courtesy of Shutterstock and the U.K.’s FCA.
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Source: NewsBtc
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