The British Financial Conduct Authority revealed that there are 24 investigations currently going on about cryptocurrency businesses. It is to be noted that Financial Conduct authority (FCA) is the top market watchdog of the British Isles and is also Britain’s chief financial regulator.
The news confirms the speculations that the British authorities are feeling uneasy with the rise in the crypto rush and businesses associated with them.
The FCA has made certain earlier comments regarding the cryptocurrencies. Earlier this year, FCA’s chairmen at the time John Griffith Jones cautioned that the cryptocurrencies left unregulated have the potential to wreak havoc and harm the customer’s financial interests.
The agency tried to caution the customers with the notifications on its websites. FCA has declared cryptocurrency as a topic of interest. The interest is simultaneously affecting both regulators and the investors and the interest is oriented towards global audiences.
FCA however was clear that the cryptocurrency regulation didn’t fall under its jurisdiction completely. There are certain aspects of the usage of the cryptocurrency businesses that do fall within the purview of the FCA. That justify the interest on its part.
However, there are other aspects which simply don’t fall within its jurisdiction.
The FCA later in April released a memo requiring the crypto businesses to meet the authorization requirements before beginning operations and declared that its subversion will bring them criminal lawsuits.
The FCA informed that there are seven whistle blower reports pending this year so far. These are related to its inquiries in the crypto businesses. The investigations are going to inquire into these twenty four crypto entities businesses.
The aim is to will assess if their activities falls within the regulated sphere of the FCA jurisdiction. If that happens to be the case, did these companies have acquired proper authorization before entering into their respective businesses. If they are found on faulty grounds, criminal suits will follow the course.
The governmental regulations all over the world is gaining ground given the expansion of the crypto businesses. American SEC, NASAA, European Union and now Britain too has joined the long list of the over cautious governments. These government are united in their desire to tame the wild west of the crypto markets.