UK’s financial authority, the FCA (Financial Conduct Authority) has been monitoring cryptocurrencies and blockchain firms to understand the integrities of the ecosystem, so they can draft an effective approach to employ and regulate the technology. The agency is currently investigating 18 companies working in the cryptocurrency sector.
According to the latest report released by UK media, the investigation is due to the increasing concern for customer’s financial soundness. Though the name of the 18 companies hasn’t been disclosed, this is not a new procedure for FCA. The Agency investigated 24 firms in connection with cryptocurrency in May and another further 67 firms were put under scrutiny in November.
Following Nov 12, FCA counted almost 67 firms in connection with cryptocurrency wherein 2/3rd of such investigations have been launched since May. The strategic lead at FCA, Christopher Woolard urged that ‘cryptoassest posed potential harm’ across the UK. With this, he also highlights the upcoming measures that the FCA, Bank of England and HM Treasury will conduct to encourage beneficial innovation by eradicating threats.
Regulating Cryptocurrencies in the UK
FCA further elaborated their plans for the coming year:
“We will work with the Bank of England and the Treasury as part of a task force to develop thinking and publish a Discussion Paper later this year outlining our policy thinking on cryptocurrencies.”
During April 2018 an official report noted that FCA isn’t aiming to regulate cryptocurrencies in case if such crypto assets fall under regulated products or services. However, the current monitoring is a part of precaution taken by the agency from the escalating ICOs and the unregulated loopholes in the ecosystem. While 2018 observed a downfall in terms of pricing, the threats, ICO scams and other illicit activities seem to be on a rise.