The United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), has warned consumers against 111 crypto companies that are not registered with the FCA. All U.K.-based crypto firms were to comply with Anti-Money Laundering and Counter-Terrorist Financing laws and register with the FCA by 10th January to operate legally in the UK. However, many crypto firms failed to do so. FCA’s head of enforcement, Mark Steward, asserted that the unregulated crypto entities pose a threat to consumers, banks, and payments firms who do business with them.
FCA compiles a list of unregistered crypto firms.
The financial regulator has compiled a list of more than 100 crypto firms that appear to be operating unregistered so that investors can double-check if a firm they intend to deal with is non-compliant or not. The FCA appears to be extra vigilant in light of the burgeoning popularity of cryptocurrency in the UK. According to the FCA’s recent survey, 2.3 million UK adults now hold crypto. However, there has been a notable downward trend in investors’ overall understanding of the crypto assets they own.
“Fear of missing out is causing people to invest in crypto.”
FCA’s head of enforcement, Mark Steward, likened the crypto industry’s growth to the Dutch tulip mania of the 1630s, noting that fear of missing out (FOMO) is driving many to speculate on highly volatile assets. He said, “The reason many are investing now is that they have a fear of missing out on what might be a boom. And leaving aside how volatile these instruments actually are, it has tulip mania written all over it.” With the latest anti-money laundering law in place, many crypto firms are having a hard time complying and leaving the market entirely.