The Financial Conduct Authority (FCA), the United Kingdom’s apex market regulator, is taking a proactive approach to curbing scams as they are inherent in the fast-growing crypto world.
Per a report published by the regulator, as many as 16,400 inquiries were received on its ScamSmart website in the six months leading to September 2021.
Of these received reports, a total of 4,300 were explicitly related to cryptocurrency-focused scams, with as many as 300 specifically linked to crypto-focused firms. The FCA has reportedly opened active investigations into these indicted companies, re-enacting the regulatory crackdown at a time when it seems the world is distracted by the ongoing war between Russia and Ukraine.
The investigations on these crypto outfits have sparked live investigations and criminal probs into these firms. The FCA has maintained a very proactive measure with respect to bringing sanity and legitimacy. It will protect every member of the society when it comes to the entirely encroaching, but innovative blockchain industry.
While known to have granted exchanges like CEX.io the license to operate in the country, the regulator has also made a lot of headlines last year with its crackdown on Binance, the world’s largest trading firm.
While the jurisdictional powers of the FCA are limited to preventing unregistered exchanges from operating while ensuring the licensed ones adhere to Anti Money Laundering (AML) provisions, it has often maintained the main focus of protecting members of the public from potential scams in the crypto and broader market ecosystem.
“Consumers need to have confidence when making investment decisions and the data we’ve published today shows how prevalent scams can be,” said Sarah Pritchard, executive director, markets, FCA, “Before investing, check you know who you are really dealing with, check if they are authorised by the FCA and do your research to understand the risks that might be posed.”