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The UK Financial Regulatory Authority has initiated new investigations into suspected frauds and illicit reports in a number of cryptocurrency companies operating in the country, in the latest example of authorities repressing rogue crypto societies.
Reported in the Financial Times, the Financial Conduct Authority launched the latest series of weekend surveys as part of an operation to clean up the encrypted sector, with as many as 18 companies under formal investigation.
The regulator has also issued notices or warnings for further dozens of operators, with the suspicion that they may be involved in the promotion of cryptocurrency scams.
The move follows investigations initiated in recent weeks in 67 cryptocurrency companies in the United Kingdom, of which 49 were closed with 39 issued with further warnings. At the time, FCA's Director of Strategy and Competition, Christopher Woolard, said that there was concern about market integrity and incorrect sale by cryptocurrency firms.
According to Woolard, "We are concerned that retail consumers sell complex, volatile, and often leveraged derivative products based on trading tokens with underlying market integrity issues."
The news comes at a time when regulators are reported to rise all over the world, led by investors affected by the collapse in prices in encrypted markets, led by the collapse of Bitcoin Core (BTC).
With the fall in prices, fraudulent cryptographic investment products are increasingly exposed, with investors losing significant shares worldwide from their involvement in these programs.
However, Gillian Dorner, Deputy Director of the UK Treasury, said that the bear market had time for regulators in the UK to stop and take stock of the situation, in order to establish the most constructive political response to the rogue companies . Dorner said: "We want to take the time to examine it more thoroughly and make sure we take a proportionate approach."
The latest series of surveys shows the entities of unscrupulous encryption companies and investment activities in the UK, where regulators remain concerned about the potential risk of harming investors. The moves come at a time of increasing action by regulators all over the world, which continue to exert pressure on companies suspected of promoting illegal cryptocurrency investments.
