Bitcoin Forum

UK Financial Regulator Opens 24 Investigations Into Crypto Businesses for Compliance


UK authorities have opened 24 investigations into cryptocurrency businesses over financial regulatory compliance, local media outlet CityWire reported May 25.

Responding to a freedom of information request, regulator the UK’s Financial Conduct Authority (FCA) also confirmed it had opened seven whistleblower reports since the start of the year.

While the FCA did not mention which specific businesses were on its radar, a response to CityWire stated that the investigations were being made in order to “determine whether they might be carrying on regulated activities that require FCA authorisation.”

Addressing possible consequences of its own investigation, the FCA meanwhile appeared to hint it would take action according to the seriousness of any offending business, without mentioning which parameters it would use to judge activities.

According to the FCA’s response, the investigations’ priority is consumer protection:

“If we conclude that they are, then we may investigate and take action, identifying and determining the most serious matters which pose the greatest risk to consumers.”

The FCA’s investigations join regulatory steps currently underway in other major jurisdictions regarding crypto business compliance.

Earlier this week, a joint U.S.-Canada investigation dubbed ‘Operation Cryptosweep’ was opened, targeting potentially fraudulent industry investment programs. Investigators have so far unearthed around 35, a press release from the North American Securities Administrators Association (NASAA) announced.

Across the globe in Singapore, the central bank issued warnings May 24 to eight local crypto exchanges that could potentially be breaking securities laws. The Monetary Authority of Singapore (MAS) also confirmed it had sent a demand to one ICO token issuer to halt its activities.

Source: https://cointelegraph.com/news/uk-financial-regulator-opens-24-investigations-into-crypto-businesses-for-compliance

It would be interesting to note which businesses are under investigation - is it cryptocurrency exchanges, companies which offer contracts for differences or companies which raise funds through ICOs. UK has a reputation as a business friendly finance centre. I am not sure if action against legitimate crypto companies would be in line with its image.

Everything that is breaking local laws is a potential target. If we look at how chaotic this market is in terms of exchanges not doing anything to become compliant, cloud mining services not doing anything to become compliant, authorities have a lot to target here.

Coinbase is the perfect example of how an exchange or service should be working. They only list coins and products of which they know are compliant in every possible way. They choose for legal stability and quality instead of doing what other exchanges are doing and list any crap coin they can find.

I expect some serious regulatory cleaning to happen in the forthcoming years when it comes to the coins that exchanges are listing. The coins I am sure of they won't stand a chance are those focused on privacy; they will be wiped out within a few years. I also expect a significant decrease in ICO's that are running on top of Ethereum due to regulations kicking in.

I hope one of the companies they're investigating is Circle/Poloniex - those f*ckers need to be locked up.

(FCA) of UK has yet no opportunity to open criminal cases and earlier in the message they confirmed it. And just the notice on their website that this coin is dangerous - ok. I think it is necessary to judge by real actions, this statement only shows their interest.