FCA Warns against 111 Unregistered Crypto Companies

The UK’s Financial Conduct Authority (FCA), the agency responsible for overseeing the crypto industry on anti-Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term and counter-terrorist financing, raised an alarm on Tuesday against 111 unregistered cryptocurrency companies operating in the country.

Addressing the City & Financial’s City Week event, Mark Steward, FCA’s Head of enforcement and market oversight, said: “We have a number of firms that are clearly doing business in the UK without being registered with us and they are dealing with someone: banks, payment services firm, consumers.”

“This is a very real risk so we are worried about that.”

The financial regulator mandated the registration of all crypto companies operating in the United Kingdom. However, the approval process remains very slow, and the watchdog has temporarily allowed the operations of the companies that have already submitted their applications. Only a few firms have gained the status of crypto businesses.

But, these 111 companies have not even applied for the FCA’s approval, which makes their operations illegal in the country even at this date.

The Number of Crypto Investors in Increasing

Meanwhile, interest in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term among British nationals skyrocketed over the past year. Recently, the FCA revealed that 2.3 million UK adults are now holding crypto assets, which is a significant jump over a year.

However, the concerning thing is awareness about cryptos among these investors has declined.

“The reason many are investing now is because they have a fear of missing out on what might be a boom,” Steward said. “Leaving aside how volatile these instruments actually are, it has tulip mania written all over it.”

The FCA issued multiple warnings against the speculative and risky nature of cryptocurrencies. It even banned the sale of retail cryptocurrency derivatives, citing the lack of knowledge about such sophisticated products among retail investors.