January 02, 2019 | AtoZ Markets – The UK financial regulator FCA is reportedly probing companies involved in cryptocurrency-related transactions, for market risks concerns.
As the regulator confirmed last week, there are 18 business involved in selling cryptocurrencies like bitcoin, all of which are under the FCA’s investigation at the moment.
In parallel, the U.K financial watchdog also issued many warnings about dozens of companies suspected of carrying out cryptocurrency investment scams.
The FCA had tightened its grip on the financial markets as of the 12th of last November, where it had started probes on 67 companies associated in cryptocurrency trading, as the media reported.
Since the industry is not yet regulated in the UK, the financial regulator in the country pays extra attention to businesses pertinent to cryptocurrency trading, and request such companies to register with it, and clarify their business line for obtaining the authorisation needed.
Business professionals call for regulating the cryptocurrency industry
In its turn, CryptoUK, a trade association for the UK industry, confirmed that they encourage regulating the industry in a proper way that enables it to contribute better to the financial system.
“As an industry, we have been calling for the introduction of proportionate regulation. Over the coming months we will be working closely with policymakers, including in the FCA, to develop new regulation that strikes the balance between ending bad practice and enabling this exciting industry to flourish, as it does in other countries.”, said the association.
Within more power the regulator was said to have been given over regulating the financial market, as the UK government recently stated, the former had imposed a ban on binary options, for saving “saves UK customers around £17 million a year, with a tendency for restricting trading to cash only, as the regulator noted earlier this year.”, as AtoZ Markets reported on December 10, 2018.
The FCA was said to have followed its EU counterpart, ESMA, in tightening the regulations on CFDs, where it published a notice that, in accordance with “Article 40 of Regulation (EU) No 600/2014 to prohibit the marketing, distribution or sale of binary options to retail clients.”.