The financial regulator of the UK has increased the number of cryptocurrency-related companies it is investigating over “unlicensed operation” to 50. As the FCA investigates cryptocurrency companies for potential violations, this news is according to reports in The Telegraph, a local daily news outlet.

According to The Telegraph, the FCA confirmed the probe in response to a Freedom of Information request. The regulator is cracking down on firms offering financial services without approval, as the UK seeks a more regulated approach to crypto.

Industry experts suggest the FCA’s increased scrutiny follows market turmoil and fraud risks. Andrew Jacobs, partner at Moore Stephens, noted:

“The crypto price crash likely triggered a surge in complaints. Now, with prices down, fraud is exposed—pressuring the FCA to ensure transparency.”

The move highlights growing regulatory efforts to protect investors as the crypto industry faces tighter oversight.

FCA Warns of Crypto Crackdown Due to Fraud

Thanks to the spate of fraudulent activities taking place in the crypto market, the FCA had recently announced that it intended to “adopt a heavy-handed approach to cryptocurrency as it appears in the financial services industry.”

Part of the actions it has taken includes discussing a ban on specific types of financial products. However, there are fears that this ban could extend to Bitcoin futures and other similar instruments that have been operating successfully elsewhere.

“We are concerned that retail consumers are being sold complex, volatile, and often leveraged derivatives products based on exchange tokens with underlying market integrity issues.” Christopher Woolard, the FCA Executive Director of Strategy and Competition said in a speech given last week.

Critics of this approach have dismissed it as a “blunt instrument approach.” Thanks to the current downturn in the prices of cryptocurrency, the FCA has not felt the need to hastily introduce new rules for the industry.

In conclusion

The FCA investigates cryptocurrency companies extensively, with fifty cryptocurrency-related businesses currently under investigation by the UK’s financial regulator on suspicions of offering financial services without any approval from the institution. This number is more than twice the figure reported by the FCA in May this year.

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