British regulator reports investigations into 50 crypto firms

The UK’s Financial Conduct Authority (FCA) continues investigations, including criminal cases, into 50 crypto firms.

According to the regulator’s statement, from April to September 2021 it reviewed 300 cases relating to unregistered cryptocurrency firms.

During this period, the agency, via the ScamSmart service, received 16,400 reports from users of potential scams, of which 4,300 related to cryptocurrencies.

ScamSmart also provides investors with online warning tools, including information on potential risks and lists of unregistered firms operating. The regulator noted that a lack of authorisation is directly linked to the likelihood of fraud.

In September the FCA announced tightening of regulatory measures for the crypto industry. In October the regulator launched the InvestSmart service, aimed at helping consumers who are just starting out in investing.

“Consumers should be confident in their investment decisions, and the data we publish show how widespread fraud can be. Before investing, verify who you are dealing with, whether they are authorised by the FCA, and review all potential risks,” said Sarah Pritchard, Executive Director of Markets.

The regulator noted that during the period it refused registration to about 25% of firms seeking to enter the consumer investment market. A year earlier, the figure stood at 20%.

As of June, the FCA withdrew 64 crypto firms’ registration applications. Among them was the local Binance subsidiary.

The regulator banned the local subsidiary of a Bitcoin exchange from operating in the country.