BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Britain's financial regulator is probing 18 businesses involved in cryptocurrency transactions amid concerns about increasing market risks.
The Financial Conduct Authority or FCA also issued alerts and warnings about many companies suspected of cryptocurrency investment scams. The FCA reportedly declined to name the companies due to the ongoing investigations as well as the commercial concerns for the businesses involved.
The Sunday Telegraph reported, following a Freedom Of Information request with the regulator, that as of November 12, the FCA had opened inquiries into 67 companies involved in the cryptocurrency business. The agency has closed 49 inquiries subsequently, in which it had issued consumer alerts for 39 firms. Meanwhile, 10 inquires were closed as they had been warned that they may need authorization to continue their activities, or the FCA didn't have enough evidence to move ahead.
In the UK, the transfer, purchase and sale of digital currencies is not regulated at present. But, the companies that sell regulated investments related to cryptocurrencies require the UK financial watchdog's authorization.
In late November, the FCA had conducted inquiries into 50 cryptocurrency-related businesses over unlicensed operations. In October, the agency said it was weighing a ban on the sale of derivatives based on cryptocurrencies such as bitcoin.
Regulatory authorities around the world are discussing strict regulation for bitcoin and other cryptocurrencies.
The French financial markets regulator AMF in mid December blacklisted some more cryptocurrency websites in its efforts to block crypto firms with unauthorized investment offerings.
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