The FCA to Start Cracking Down on Crypto Scams

The United Kingdom’s Financial Conduct Authority (FCA) has announced that it will begin cracking down on potentially illicit crypto-activity. The FCA is finally joining the ranks of other nations trying to protect its citizenry from con artist and scammers. Already the Financial Services and Markets Authority (FSMA), the regulating financial body for Belgium, warned citizens of growing crypto and blockchain platforms scams, and has added a multitude of suspicious websites to its blacklist.  France’s financial market authority, L’Autorité des Marchés Financiers (AMF), has been cracking down on fraudulent crypto-based sites for some time now, targeting those who are advertising get-rich-quick scams and fake initial coin offerings (ICOs). In a recent purge, the regulatory had added 21 new sites to their blacklist.

The FCA has made an announcement through its executive director of strategy and competition, Christopher Woolard, that while the crypto industry will not disrupt the financial sector, the regulator needs to intervene when illegal crypto-based activities arise. Woolard is quoted from address at  the Regulation of Cryptocurrencies event held in London:

“ …the regulator is planning to take significant action to crack down on the illicit use of cryptocurrencies.”

In order to better manage the growing crypto market in the UK, Woolard stated that a cooperation between the regulator, Her Majesty’s Treasury (HMT) and the Bank of England.

The joint examination into the industries of cryptocurrency and blockchain will help to determine the overall effect that the nascent sectors have brought to the financial security of the nation.

Woolard commented:

“The FCA, HM Treasury and the Bank of England are each taking a number of steps over the coming months to address these harms and to encourage future beneficial innovation.”