The Financial Conduct Authority (FCA) of the UK published an official warning against a total of 111 unregulated crypto-related firms that are currently operating in the country.
Mark Steward, the head of enforcement and market oversight down at the FCA, commented that his agency is completely aware that there are firms in the UK currently operating without authorization.
Furthermore, all 111 companies are yet to apply for a license, leading many to speculate that all these firms are indeed scams.
Meanwhile, interest in crypto derivatives saw an incredible spike, as UK consumers increased their interest in the asset category. A report by the FCA reveals that 2.3 million UK citizens are holding cryptocurrencies in one shape or another.
All United Kingdom-based crypto services firms must be regulated by the FCA. This was the decision of the regulator and government officials. However, the FCA introduced a Temporary Registrations Regime for all pending crypto company licenses, and earlier this year even extended the due date for all submission to 31st March 2022. As of now, only a handful of firms were able to get the full permission of the FCA to legally operate their crypto-based businesses.
Moreover, the UK watchdog last year banned the retail trading in cryptocurrencies, due to the harm and risks these derivatives do to retail clients in the UK.