FCA opens 24 investigations into cryptocurrency businesses

Regulatory scrutiny is mounting on unauthorised businesses involved in cryptocurrencies, with 24 enquiries having been opened by the FCA.
The enquiries show how seriously the FCA is taking its approach towards regulation of cryptos, as they look to close down loopholes that allow unauthorised businesses to use Initial Coin Offerings to raise investments from retail clients.
Additionally, the FCA confirmed there have been seven whistleblower reports opened involving cryptocurrencies so far in 2018.
The FCA is not going to let cryptocurrencies escape scrutiny. Businesses should be expecting ‘Dear CEO’ letters as a result of the investigations and growing regulatory intelligence.
It is crucial the FCA is able to close loopholes and bring businesses inside the correct regulatory perimeter before there are too many problems with this market resulting in further cases of consumer detriment.
Ultimately, a well-managed crypto environment is good for both investors and businesses and in the interest of the Regulators.
As part of the its 2018/19 business plan, the FCA is planning on launching a review into cryptocurrencies and their regulation in conjunction with the Bank of England and HMRC.
For more details on cryptocurrencies or achieving regulatory compliance, contact Andrew Jacobs.

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