The United Kingdom’s financial regulating body, the Finance Conduct Authority (FCA), issued a warning towards a hundred and eleven crypto firms. These UK-based firms were offering crypto services in the country without proper registration. These companies pose a very high risk and are extremely volatile.
Registered and Unregistered Firms
The FCA ensures that the companies comply with anti-money laundering provisions and counter-terrorism provisions. This is how they have monitored and overseen the crypto industry.
However, it is mandatory for the crypto firms to fully register themselves through the FCA before they begin trading. Unfortunately, there are only a handful amount of registered companies, FCA states.
FCA Cautions Consumers
The FCA also issued a warning to the consumers for investing in such firms. This warning comes as there is no form of protection or guarantee of security. Due to the extremely volatile and unpredictable nature of the market, unregistered firms are equally volatile.
The Temporary Registrations Regime (TRR)
Earlier this month, the FCA extended the Temporary Registrations Regime (TRR) deadline from the 9th of July to the 31st of March, 2022. TRR allowed the existing crypto firms to get registered so that they could continue trading legally.
In conclusion, the FCA is looking extremely serious over this matter as this poses a very real threat to the country’s economic stability.