The FCA UK regulator targeted more than 100 crypto companies with warnings as it was concerned with the industry again over malfeasance so let’s read more about it in our crypto regulation news.
The UK Financial Conduct Authority was concerned for a long time with the crypto industry and warned unregistered crypto entities over malfeasance so it issued a warning about unregistered crypto companies which is in line with the previous statements about the broader crypto industry. The FCA UK financial regulator said that 111 unregistered crypto assets posed a risk to consumers as Mark Steward who is the head of enforcement and market oversight at the FCA said:
“We have a number of firms that are clearly doing business in the UK without being registered with us and they are dealing with someone: banks, payment services firms, consumers.”
Steward was speaking at the City & Financial City’s Week event and went on to explain that many are getting more involved with crypto due to the fear of missing out going as far as to say that the latest craze was the tulip mania years ago. Steward’s warning about unregistered crypto companies and speaking more generally is in line with the FCA’s wider stance. The FCA imposed a ban on trading crypto derivatives describing the products as ill-suited to retail customers so the FCA said that all products lack reliable valuations, feature the prevalence of financial crimes and volatility and retail investors have no knowledge of how to safely interact with these products.
Five days later, the FCA listed five entities in the crypto industry with the consumer protections topping the list. The FCA turned its focus to the legacy issues with financial crimes announcing that the companies will now be required to submit annual financial crimes reports to the FCA much like any other financial services industry:
“This policy statement proposes that additional firms and crypto asset businesses should be brought into scope of the return based on their business activities and the potential money laundering risks.”
The FCA’s stance could not find more support among purists but the concerns are legitimate. In May, the UK’s National Crime Agency released the annual assessment of organized crime and it said that the criminal use of technology is increasing while the use of crypto assets to launder increased across several crime types.