Home BLOCKCHAIN Financial Conduct Authority probes businesses that use cryptocurrencies

Financial Conduct Authority probes businesses that use cryptocurrencies

FCA investigates UK businesses

The Financial Conduct Authority (FCA) is investigating over a dozen businesses that have dealt in cryptocurrencies.

On Sunday, the FCA confirmed it was investigating 18 business that were involved in the sale of cryptocurrencies. The FCA declined to name the companies involved.

The UK government earlier this month said it “stands ready” to give the FCA more power to oversee cryptocurrency assets after MPs urged increased regulation of the market.

In a statement released earlier this year, the FCA said

“We are aware of a growing number of UK firms offering so-called cryptocurrencies and cryptocurrency-related assets. As indicated in our Feedback Statement on DLT, cryptocurrencies are not currently regulated by the FCA provided they are not part of other regulated products or services.

Cryptocurrency derivatives are, however, capable of being financial instruments under the Markets in Financial Instruments Directive II (MIFID II), although we do not consider cryptocurrencies to be currencies or commodities for regulatory purposes under MiFID II. Firms conducting regulated activities in cryptocurrency derivatives must, therefore, comply with all applicable rules in the FCA’s Handbook and any relevant provisions in directly applicable European Union regulations.”