Crypto market is suffering severe battering every day and regulators across the world are closely looking at the market scenario. As per the new report released by ‘the telegraph’, UK’s Financial Conduct Authority (FCA) is setting their weapons ready to curb fraudulent activities in the country’s crypto market.
Dodgy Cryptocurrency Firms Doubled Up
Reportedly there have been 24 inquiries lodged by UK’s FCA for the firms operating without the prior permission. In fact, this year the FCA investigation entities has got doubled, closer to 50. Moreover, FCA revealed that the whistle-blowing has submitted seven reports from employees of crypto businesses which was none in the past three years. Sources quoted Andrew Jacob’s statement who is a partner at an accountancy firm, Moore Stephens – he said lost crypto funds are the result of the severe decline in crypto prices. He elaborates it as;
“Now that prices have collapsed, fraud is likely to be exposed, with greater pressure coming to bear on the FCA to ensure that this market can operate transparently and fairly.”
Since cryptocurrencies cannot be regulated, the number of lost funds is increasing and as such the FCA is receiving a rash of complaints. Christopher Woolard is an executive of FCA Board member and Director of Strategy and Competition stated that;
“[Consumers] may buy unsuitable products, face large losses, be exposed to fraud, struggle to access services or be exposed to the failings of providers such as exchanges.”
In order to tackle the crypto fraudulent challenge effectively, Woolard declared that the FCA is joining hands with Her Majesty’s Treasury (HMT) and the Bank of England. In view to safeguarding consumer market integrity and avoid the risk of financial crime, this collaboration would help examine the impact of cryptocurrency and blockchain in a better way. He added,
“The FCA, HM Treasury and the Bank of England are each taking a number of steps over the coming months to address these harms and to encourage future beneficial innovation.”