UK’s finance watchdog has warned investors away from swathes of low-level crypto firms operating without proper registration, reports Reuters.
“We have a number of firms that are clearly doing business in the UK without being registered with us and they are dealing with someone: banks, payment services firms, consumers,” said Steward.
In addition to registering with the FCA, since January 2020 UK companies in crypto must adopt government guidelines on money laundering, terrorist financing, and the general transfer of funds.
Finance watchdog finds few registered
A larger number hold temporarily registrations (allowing trade while the FCA reviews their applications).
In June, the FCA extended those temporary registrations to 31 March, 2022, which were originally due to expire next month.
The FCA also maintains a database of nearly 150 unregistered “cryptoasset companies.”
Of those, Protos found some listed at addresses doubling as a beauty salon, a bookie’s, and a liquor store — the latter two likely house crypto ATMs.
The FCA recently reported about 2.3 million adults in the UK hold crypto in some form. Many investors fell into the highest-risk category — 35 or older and not particularly knowledgeable of the industry.
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