A report from the Financial Times states U.K’s top financial authority, the Financial Conduct Authority (FCA), has seen a 74% increase in crypto firms under scrutiny in 2019 compared to the figure last year. The report, published on October 7, shows that over 87 crypto-related firms are under investigation, up from 50 the previous year.
As the crypto industry grows, the FCA is taking up strict measures to ensure the crypto industry is in check. The spike in investigated cases is probably as a result of the increased fraud attempts and scams in the crypto industry in 2019.
No Nonsense Approach to Crypto Regulation
According to the research carried out by London based law firm Pinsent Masons, the commission’s heightened interest in the crypto industry is aiming at providing a fertile ground for the development of the industry.
David Heffron, a partner at Pinsent Masons, argues the increased scrutiny will get rid of the bad actors in the industry as the FCA takes on an
“increasingly hands-on and no-nonsense approach to enforcing the law in the cryptocurrency market.”
He further explains,
“For cryptocurrency businesses acting lawfully these statistics will be encouraging — they want bad actors pushed out.”
FCA Against Crypto-Related Scams
With close to 75% of the British population oblivious to what cryptocurrencies are, the FCA sets its goals to protect the consumers from crypto-related scams. Earlier in the year, the agency warned users against sketchy investment firms in the crypto space such as the two firms that cloned Goldman Sachs and Swiss Investment Corp.
Furthermore, the financial authority came out strongly against cryptocurrency derivatives in its annual report claiming it is in the process of banning the exotic assets. However, on Oct. 5, the World Federation of Exchanges pleaded with the authority to drop its proposal to ban crypto-related derivatives.