The financial conduct authority UK (FCA) opened investigation on the 50 companies associated with cryptocurrencies. Such data controller provided on request by The Telegraph.
The regulator suspects the company in providing financial services that require its approval. In may it was reported that the regulator conducts the investigation for activity without a licence in respect of 24 of cryptocurrency companies.
The increase in the number of companies in the sector, which has come to the attention of the regulator, the news publication said the partner at audit and consulting firm Moore Stephens Andrew Jacobs (Andrew Jacobs):
“The huge sums lost as a result of the fall of cryptocurrency prices this year, sparked a series of complaints to the FCA. Now, when prices collapsed, the likelihood of fraud is likely to grow exponentially. Moreover, the greatest pressure will be on the FCA to ensure that the market can operate transparently and fairly.”
The FCA Director of strategy and competition Christopher Woolard (Christopher Woolard), presenting the results of the task group on regulation of cryptocurrencies, spoke about the risks for consumers associated with these assets. In particular, he noted:
“Consumers may buy unsuitable products, face big losses, be subject to fraudulent activities, the struggle for access to the services market, or face failure of service providers such as stock exchanges”.
It should be noted that such cryptocurrency companies like Coinbase, Circle and Wirex, previously licensed E-money regulator the UK.