FCA Warns 111 Crypto Firms Are Operating Illegally in the UK – Says “This is a Very Real Risk” – Regulation Bitcoin News Regulation

The UK’s Financial Conduct Authority (FCA) has warned that 111 companies in the country are offering crypto services without proper registration. “This is a very real risk so we are concerned,” said the head of the enforcement and market oversight agency.

111 unregistered companies operating in the UK

The UK’s Financial Conduct Authority (FCA) identified 111 companies on Tuesday that operate in the crypto space without the required registration, according to Reuters. FCA enforcement and market oversight director Mark Steward said at City & Financial’s City Week event that these companies are high risk, volatile, and unregulated. He was quoted as saying:

We have a number of companies that are clearly doing business in the UK without being registered with us and they are dealing with someone: banks, payment service providers, consumers. This is a very real risk so we are concerned.

In the UK, the FCA oversees the crypto industry and ensures that companies comply with anti-money laundering and terrorist financing regulations.

Crypto firms must obtain full FCA registration before they can start trading. However, Steward said only a handful of them registered.

He then warned of the risks of investing in cryptocurrencies like Bitcoin. The FCA Enforcement and Market Oversight Director said:

The reason many are investing now is because they are afraid of missing out [FOMO] on what could be a boom. Aside from how volatile these instruments actually are, tulip mania is written all over them.

Earlier this month, Bitcoin.com News reported that the FCA has extended the Temporary Registration Regime (TRR) period for existing crypto companies from July 9, 2021 to March 31, 2022. The TRR was set up last year to enable existing crypto assets to continue trading for companies that applied for registration before December 16, 2020 and whose applications are still under review. The FCA said at the time:

A significantly high number of companies do not meet the required standards of the Money Laundering Ordinance. This has resulted in an unprecedented number of companies withdrawing their applications.

What do you think of crypto companies operating in the UK without registering with the FCA? Let us know in the comment section below.

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