U.K.’s Financial Conduct Authority doubles its cryptocurrency investigations
Given the current bear market, the U.K.’s Financial Conduct Authority (FCA) has seen a sharp rise in complaints regarding the cryptocurrency market. According to the Telegraph, 50 firms are currently under investigation for operating without a license.
As Bitcoin and other cryptocurrency values fall, the FCA has doubled its investigations from 24 in May to 50 as of November. The FCA has also stated that they’ve received seven whistleblowing reports this past year from employees of crypto-related businesses as compared to zero from the past three.
Given Bitcoin’s value increase to over $20,000 last year, cryptocurrencies have garnered the attention of eager investors worldwide. Over 2,500 cryptocurrencies exist today, and with them a slew of companies promising quick and easy wealth to anyone willing to invest. Now that Bitcoin has fallen below $4,000 many are left wondering where their money went, which ultimately resulted in the rise of complaints the FCA receives.
It isn’t that cryptocurrencies aren’t profitable, here’s a list of people who’ve proved they are. It’s that many enter the market without any knowledge of how it works and throw money at anyone promising decent returns. And when it all falls down, government agencies such as the FCA are left to pick up the pieces.