Financial Conduct Authority [FCA] declared that 50 unauthorized crypto firms are under their radar. It has been trying to eradicate unregistered firms and related crypto businesses. This is one more move in that direction. This Thursday, FCA sanctioned 300+ cases in 6 months. All of them were on the unregistered crypto businesses and firms. According to FCA, most of these proclaimed crypto firms are scams. The financial watchdog of the country also announced 50 continuing investigations. Some of them may also encompass criminal probes. There are 16,400 queries regarding the crypto-related scams to the FCA from April to September 2021.
According to the new announcements, the crypto services now need to register themselves with FCA if they want to operate in the UK. It is also applicable for associating with UK-based clients. According to the report of Cointelegraph, only 32 firms till now got the acceptance of FCA. They are now recognized as Registered Crypto Asset Service. However, the application number was 200, much higher than the acceptance rate. The subheads of Uphold, Light Technology and eToro in the UK have received their crypto licenses this year. However, there is a far gap between the applicants and the acceptance.
The authority said they need to implement more active supervision and stringent action. The financial watchdog also started the consultations for all the received proposals. The feedback acceptance will be continued till 23rd march. Various other UK authorities have also combated unregistered and illegal crypto firms. The advertising authorities have issued some guidelines. According to these, various famous crypto exchanges got banned in the UK. The main crux was misleading content advertising. For instance, the promotion by Coinbase in Europe was considered ‘misleading.’ Next, authorities said that promotions of Kraken operators have no disclaimer for the risk factors involved.
