UK’s financial authority acts as a nanny when it comes to businesses that are employing Bitcoin and cryptocurrency. Enclosing this, the legal watchdogs are keenly stepping up to draft the most effective approach on how cryptocurrencies and Blockchain tech can be employed.
- May 2018 – 24 firms were investigated
- November 2018 – FCA opened inquiries for 67 firms
- December 2018 – FCA investigates 18 businesses, targets Bitcoin activities
18 cryptocurrency firms under scanner
The latest report released by UK media unveiled that the FCA (Financial Conduct Authority) is currently investigating 18 companies which are working with the decentralized mechanism. However, the name of these 18 firms is out of sight but the investigation is a result of increasing concern for customer’s financial soundness.
Following Nov 12, FCA counted almost 67 firms in connection with cryptocurrency wherein 2/3rd of such investigations have been launched since May. The strategic lead at FCA, Christopher Woolard urged that ‘cryptoassest posed potential harm’ across the UK. With this, he also highlights the upcoming measures that the FCA, Bank of England and HM Treasury will conduct to encourage beneficial innovation by eradicating threats.
UK regulators on the hunt
Moreover while detailing the coming year plan, FCA notes that;
“We will work with the Bank of England and the Treasury as part of a task force to develop thinking and publish a Discussion Paper later this year outlining our policy thinking on cryptocurrencies,”
The official report revealed during April 2018 notes that FCA isn’t intended to regulate cryptocurrencies in case if such crypto assets fall under regulated products or services. The increasing concern over businesses in connection with cryptocurrencies comes with the escalating ICO approaches with unregulated loopholes that happened last year. Though 2018 wasn’t as significant as 2017 for cryptocurrency prices and the increasing threats, ICO scams, threatening Bitcoin bomb emails and illicit activities are no exception.
What do you think about FCA’s finding? What would be the best fit solution to address?
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com