300 New Cases Opened by FCA Against Unregulated Crypto Businesses

300 New Cases Opened by FCA Against Unregulated Crypto Businesses

This Thursday the FCA announced that it will be cracking down on financial scams, more specifically on fraudulent crypto investment firms. The British watchdog has reportedly opened 300 fresh cases related to unlicensed crypto firms. Many of these are considered as scams. There are currently 50 live investigations going on against these companies.

The regulatory agency also revealed that it has received 16 400 inquiries between April and September of 2021 pertaining to possible scams. Compared to 2020, these numbers are some 30 percent higher.

All crypto companies operating within UK territory are mandated by the FCA to apply for a license. The agency received hundreds of applications, however no one anticipated that approval processes would be slow, so slow in fact that only a very few number of applicants have been approved as of today.

The FCA stated that it has halted a quarter of the applications from firms wanting to get licensed. The regulator disclosed that the rejected firms had not met the minimum requirements set by the overseer. Furthermore, the FCA mentioned that potential future regulatory and legal problems that these companies can pose is one of the main reason  for why they were not given a green light.

Additionally, the FCA did not neglect to warn all UK users of the rampant nature of cryptocurrency scams, as well as recovery rooms, and boiler rooms.

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