On Thursday, the UK’s Financial Conduct Authority ( FCA), announced that it will take assertive action against financial frauds in the consumer market. It also warned investors about scams involving crypto assets and recovery rooms.
The financial market supervisor also stated that 16400 inquiries about possible scams were received between April and September 2013. This figure is approximately 30% higher than last year.
The regulator opened over 300 cases related to unregistered crypto-asset companies, many of which are believed to be scams. These crypto-asset companies are already the subject of 50 active investigations by the regulator, which include criminal probes.
“Consumers must have confidence in their investment decisions,” stated Sarah Pritchard (FCA’s Executive Director for Markets).
The Targets Are Crypto Firms
All crypto companies in the United Kingdom were required to register with the FCA. Although it received many requests from crypto service providers, the approval process was slow. Only a handful of companies have been approved by the British regulator.
The regulator also stated that it had stopped 25% of the applications by firms wishing to join the consumer market for investment. This is an increase from the 1 in 5 ratio in the previous financial year.
The regulator stated that addressing the risk of harm at authorization prevents firms not meeting the FCA’s minimum standards being allowed to enter the regulatory perimeter. It also helps to prevent further problems that may need supervision or enforcement action.