More inquiries are done on cryptocurrency businesses as Citywire reported that the UK’s financial watchdog, the Financial Conduct Authority (FCA), has confirmed the launch of investigations on 24 cryptocurrency businesses.
The watchdog will be investigating the operations on what they believe are unauthorized businesses that use cryptocurrencies.
If the FCA finds that these 24 businesses are, in fact, unauthorized businesses engaging in regulated activities, the agency will be taking the necessary measures against them. The FCA will also be identifying the particular activities that pose the greatest risks to the public.
While the FCA does admit that cryptocurrencies in general are not directly placed under its regulatory authority, some crypto models are.
The watchdog plans on presenting its views on the tech later on this year.
Earlier this year, the FCA had given authorization requirements for businesses offering crypto derivatives, indicating that the failure to do so is a criminal offense.
It should be noted that these new inquiries are not part of the cryptocurrency review that the agency had announced in its 2018 – 2019 business plan.