Crypto market is facing severe ups and downs every day and regulators across the world are closely looking at the market scenario. As per some news report, UK’s Financial Conduct Authority (FCA) is getting geared up to curb fraudulent activities in the country’s crypto market.
It can be considered that FCA is almost late to the party since there has been news of several countries, including developing ones already putting together a comprehensive regulation which has helped protect its residents from getting cheated by dishonest crypto operators.
So far, the UK financial watchdogs have been slow in their actions. According to some sources, FCA has already lodged 24 inquiries against firms operating without prior permission. Recently this number reached 50.
Christopher Woolard, the executive director of strategy and competition at the FCA, made it known in a recent post, that the FCA does not view cryptocurrencies has a threat to the countries financial stability, however, the watchdog is ready to ensure that illegal crypto activities do not thrive within the UK.
Woolard also made it known at the Regulation of Cryptocurrencies event in London, “that the regulator is planning to take significant action to crack down on the illicit use of cryptocurrencies.”
These actions by the regulator are in response to the unprecedented increase of crypto adoption in recent years. This way the FCA will be able to have an adequate close watch of the UK’s crypto industry before it gets too unmanageable.
Woolard further made it known that the regulator has sought to facilitate collaboration between FCA and Her Majesty’s Treasury (HMT) and the Bank of England.
Woolard also cited that,
“The FCA, HM Treasury and the Bank of England are each taking a number of steps over the coming months to address these harms and to encourage future beneficial innovation.”
According to him, the collaboration between the two parties will help to examine the impact of cryptocurrencies and distributed ledger technology with regard to “consumers market integrity, and the risk of financial crime.”
Christopher Woolard added a point of concern that “[Consumers] may buy unsuitable products, face large losses, be exposed to fraud, struggle to access services or be exposed to the failings of providers such as exchanges.”
The well-versed crypto community will no doubt welcome this move by authorities. Such measures prevent frivolous compromise and build confidence in the people to warmly embrace a happening technology.