British regulator investigating 50 crypto companies
The UK's Financial Conduct Authority (FCA) investigates 50 crypto companies. Some of them are facing criminal charges.
According to the FCA website, there were 300 cases involving illegal cryptocurrency companies between April and September last year. Fifty of these cases proceeded to trial, and the FCA is currently reviewing each company to determine its level of culpability. Most of them operated with no proper license, and some of them had all the signs of using fraudulent schemes.
At the same time, about a quarter of all companies seeking to enter the consumer investment market were rejected during that period. In total, more than 16,400 reports of possible scams were sent by vigilant users over that time.
“Consumers need to have confidence when making investment decisions and the data we’ve published today shows how prevalent scams can be. Before investing, check you know who you are really dealing with, check if they are authorised by the FCA and do your research to understand the risks that might be posed. Find out how to avoid scams on the ScamSmart website and get tips on investing safely on the InvestSmart website”, said Sarah Pritchard, Executive Director of Markets at the FCA.