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June 28, 2022
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The Financial Conduct Authority warns: beware of unregistered cryptocurrency companies! –

The Financial Conduct Authority, the British equivalent of the KNF, warns consumers against over a hundred (111 to be exact) unregistered cryptocurrency companies.

Financial Conduct Authority warns: watch out for these cryptocurrency companies!

As reported by https://www.reuters.com/article/us-britain-cryptoassets-regulator/uk-watchdog-issues-warning-about-111-unregistered-crypto-asset-firms-idUSKCN2DY1TQ “, British financial regulator, Financial The Conduct Authority (FCA) warns consumers of cryptocurrency companies that have not yet been entered into the relevant registry. At the moment, the number of companies with no membership in such a register has been confirmed to be 111!

As a reminder, from January 10, all British cryptocurrency companies are required to comply with anti-money laundering and terrorist financing regulations, and be on the FCA register.

As it results from recent reports, many entities have not made such a register to date, which raises many suspicions and concerns among control authorities.

Mark Steward, FCA’s chief enforcement officer, said at City Financial’s City Week on June 22 that unregulated entities pose a threat to consumers, banks and payment firms with whom they do business.

We have noticed many companies doing business in the UK without being registered in our directory dealing with others [podmiotami]: banks, companies providing payment services, consumers. Such a phenomenon poses a real risk, which is of great concern to us, ‘he said

The FCA has compiled a list of over 100 cryptocurrency companies that operate without registration. Investors should – in the opinion of the authority – consider whether it is worth cooperating with such entities.
Bitcoins are new tulips?

FCA has a rather bad view of BTC. The flight attendant compared the development of the cryptocurrency industry to the Dutch tulip mania, noting that the so-called FOMO prompts many investors to speculate in the market for highly volatile assets.

The reason why many people are now investing in cryptocurrencies is because they fear skipping what could be a hit [inwestycyjnym]. Apart from how unstable these instruments are, it is like a tulip mania, ‘he said.

Regulations in the UK

In addition, the UK government is actively trying to curb cryptocurrency-related criminal behavior such as money laundering and terrorist financing.

According to The Times UK, London police earlier this month called for a legislative change that would allow authorities and services to approach cryptocurrency in a similar way to cash crimes.

The FCA has been overseeing the cryptocurrency market since January 10, 2021 and from that date all UK cryptocurrency companies must comply with anti-money laundering laws and register with the FCA. Companies operating before January 10 this year had to submit an application for registration with the Temporary Registration System (TRR), which allowed them to continue their activities.

Failure to process applications due to the COVID-19 pandemic causes delays in the process of submitting them by companies applying for a suitable place in the registry.

On June 3, 2021, the FCA issued a notice stating that the deadline for provisional registrations has been extended from July 2021 to March 2022.

So far, the FCA has granted full operating licenses to two cryptocurrency exchanges.

They are: the British digital exchange Archax and the British branch of the exchange created by the Winklevoss brothers – Gemini, which we wrote about here.

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