FCA Has Investigated 50 Cryptocurrency Firms in 2018 So Far
- The number has more than doubled since earlier this year.

The Financial Conduct Authority, the UK's financial watchdog, has inspected twice as many cryptocurrency-related businesses than it had in May, according to the Daily Telegraph.
Market Crash
The authority has investigated 50 firms so far this year, compared to 24 in May, it told the paper in response to a Freedom of Information enquiry.
The consensus seems to be that the increased scrutiny is a result of the cryptocurrency market recently losing around 80 percent of its value in a matter of weeks. For example, Andrew Jacobs of accountancy firm Moore Stephens told the Telegraph: "The huge sums lost as a result of cryptocurrency prices falling this year will have triggered a rash of complaints to the FCA. Now that prices have collapsed, fraud is likely to be exposed, with greater pressure coming to bear on the FCA to ensure that this market can operate transparently and fairly."
This conflicts slightly with reports last week that the FCA actually felt relieved by the crash because it found itself in less of a rush to write laws now that fewer people are interested in investing.
According to Reuters, language used by FCA and government figures at a conference last week was decidedly unhurried. Gillian Dorner of the Ministry of Finance said: "We want to take the time to look at that in a bit more depth and make sure we take a proportionate approach," while Christopher Woolard, the FCA's executive director for strategy and competition, said that the authority will consult by the end of this year on whether the "grey edges" of the perimeter of Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term should be clarified. It will then, at a later, unspecified date, consult on whether to change the perimeter itself.
Wollard did express concern about cryptocurrency derivatives, however. He expressed concern that cryptocurrency derivatives are dangerous to market stability, and said that the FCA intends to "undertake one of the most comprehensive responses globally to the use of cryptoassets for illicit activities."
Adapting to Change
Cryptocurrency is only partially regulated by the FCA. Tokens are considered commodities in the UK, which are not the FCA's concern - but cryptocurrency derivatives are. The FCA has, like many other regulators, divided tokens into three groups for the purpose of classification - currency, security, and utility.
It has set up a dedicated team (the 'crypto-assets task force') to investigate the matter. The team was created in March and intends to release guidelines early next year. So fast-moving has the FCA been on this subject, a number of private businesses set up their own regulatory organisation.
The Financial Conduct Authority, the UK's financial watchdog, has inspected twice as many cryptocurrency-related businesses than it had in May, according to the Daily Telegraph.
Market Crash
The authority has investigated 50 firms so far this year, compared to 24 in May, it told the paper in response to a Freedom of Information enquiry.
The consensus seems to be that the increased scrutiny is a result of the cryptocurrency market recently losing around 80 percent of its value in a matter of weeks. For example, Andrew Jacobs of accountancy firm Moore Stephens told the Telegraph: "The huge sums lost as a result of cryptocurrency prices falling this year will have triggered a rash of complaints to the FCA. Now that prices have collapsed, fraud is likely to be exposed, with greater pressure coming to bear on the FCA to ensure that this market can operate transparently and fairly."
This conflicts slightly with reports last week that the FCA actually felt relieved by the crash because it found itself in less of a rush to write laws now that fewer people are interested in investing.
According to Reuters, language used by FCA and government figures at a conference last week was decidedly unhurried. Gillian Dorner of the Ministry of Finance said: "We want to take the time to look at that in a bit more depth and make sure we take a proportionate approach," while Christopher Woolard, the FCA's executive director for strategy and competition, said that the authority will consult by the end of this year on whether the "grey edges" of the perimeter of Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term should be clarified. It will then, at a later, unspecified date, consult on whether to change the perimeter itself.
Wollard did express concern about cryptocurrency derivatives, however. He expressed concern that cryptocurrency derivatives are dangerous to market stability, and said that the FCA intends to "undertake one of the most comprehensive responses globally to the use of cryptoassets for illicit activities."
Adapting to Change
Cryptocurrency is only partially regulated by the FCA. Tokens are considered commodities in the UK, which are not the FCA's concern - but cryptocurrency derivatives are. The FCA has, like many other regulators, divided tokens into three groups for the purpose of classification - currency, security, and utility.
It has set up a dedicated team (the 'crypto-assets task force') to investigate the matter. The team was created in March and intends to release guidelines early next year. So fast-moving has the FCA been on this subject, a number of private businesses set up their own regulatory organisation.