In UK The Financial Conduct Authority Starts Investigation Into Two Dozen Cryptocurrency Companies

The digital money sector and industry is experiencing some great changes. In spite of the increasing interest in cryptocurrency, not all businesses should be trusted by default. In the United Kingdom, the Financial Conduct Authority has started an active investigation into two dozen cryptocurrency companies. While this doesn’t intend that any of these companies have performed anything unauthorized, it will be interesting to see what the investigation finds out.

Currently, the FCA is starting at least two dozen investigations relating the cryptocurrency companies. In addition, seven informant reports were investigated in 2018. These all reports relate to Bitcoin and other cryptocurrencies, though the strict essence of the investigations is quite unclear at the moment.

All the companies that are under the investigation seem to be suggesting some type of unsanctioned product or service. The main purpose of the FCA is to define whether these companies carry out regulated and stabilized activities that may require appropriate authorization now or in the future. If it is assumed that these companies should be authorized, it is reasonable to assume that their current activities should be suspended.

Obviously, these kind of investigations will also attract some negative attention to the cryptocurrency. Although these enterprises are projected to make this industry quite lawful, active and effective regulation is so far necessary in this industry. With this purpose FCA Chairman John Griffith-Jones warned that the absence of regulation of cryptocurrencies could perhaps cause a problem in the near future.

Given that the FCA has not shared any information on the basis of which the companies are under investigation, there is plenty of room for assumption. It is positively obvious that there have been countless digital currency tricks registered in the UK and we have checked quite a few of them on this site in the past. However, there are numerous companies offering legitimate services that may still require approval.

However, it is good to see the FCA take this particular course of action, as fighting the illegal activities of the cryptocurrency is paramount. In addition, any regulation will help to legalize the cryptocurrency as a whole. This is quite a big development for the crypto industry in the UK as bitcoin and altcoins continue to attract a lot of attention.