FCA Cryptocurrency Fraud Rises

The UK Financial Supervisory Authority (FCA) reported that this year the number of active investigations in the cryptocurrency sector grew by 74%. The FCA is currently investigating 87 crimes.

International law firm Pinsent Masons emphasized that although early investors in cryptocurrencies made very big profits, now the industry is prone to fraud. According to FCA estimates, UK residents over the past year have lost £ 27 million in fraudulent cryptocurrency and forex scams.

“The increased number of investigations shows that the FCA has drawn attention to the cryptocurrency market and is trying to put things in order there. For cryptocurrency companies that work within the framework of the law, this is only a positive signal, because it means that soon there will be less criminals in this area, ”said David Heffron, partner at Pinsent Masons.

Recall that at the end of July this year, the FCA released
A revised guide to crypto assets, specifying which tokens fall under its jurisdiction. And earlier, the regulator proposed
ban cryptocurrency derivatives to protect investors from financial damage.