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FCA Issues A Warning Towards 111 Illegally Operating UK based Crypto Firms

FCA Issues A Warning Towards 111 Illegally Operating UK based Crypto Firms

FCA’s Warning

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.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.