Britain is warning unregistered crypto companies, claiming that these firms pose a crucial threat to its financial system.
The United Kingdom seems to view cryptocurrency in the same light as the United States, and the two countries appear to operate similarly. The UK has been pushing through extensive clampdowns and warnings, with the latest stemming from the FCA or the Financial Conduct Authority.
The head of market and enforcement oversight in FCA, Mark Steward, issued a warning during the weekly virtual summit that the unregulated crypto companies are high risk, unregulated, and volatile.
He also mentioned that there are a total of 111 unregistered crypto companies that are operating in Britain without the required registration.
Britain's Unregulated Crypto Companies
According to Crypto Potato, Britain's financial watchdog reported that they are concerned about certain unregulated crypto companies. These firms are working with banks in the United Kingdom and various payment services.
The financial watchdog added that they have a record of some firms doing business within the UK despite being unregistered. These firms deal with payment services banks and consumers.
Since January, businesses that deal with digital assets have had to get their hands on a Full FCA registration upon trading. Steward added that it is an extremely risky situation and that they are deeply concerned about it.
The UK seems to be heavily influenced by the US as the country grows more and more concerned with money laundering crimes. The government, however, does not seem to mind regular citizens investing and trading in cryptocurrencies.
Steward also emphasized that crypto is only a bubble. He mentioned that the main reason there are many current investors is their fear of missing out on something that might boom.
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The Brits Demand Crypto
Despite the government's efforts to decrease cryptocurrency activities in the state, many citizens still yearn for crypto.
Crypto Potato reported that 3.6% of the entire UK population, which totals 2.5 million, holds crypto assets. The total number spiked during the pandemic.
Based on an FCA survey, about half of all cryptocurrency holders within the UK are planning to increase their exposure. They believe that they will start making some money at some point.
The survey also covers the average investment that spiked from £260 to £300 in just a year, equating to almost £1 trillion. This belongs to the portfolios of small business investors in the UK.
It seems like with every passing day, the citizens' demand for crypto continues to increase. As a result, most of Britain's banks and regulators are unhappy. They view crypto as a volatile market that can combust without any warning, affecting millions of people.
The leading UK bank, TSB, started taking some action on June 20; an attempt to prevent its customer from investing in the crypto market.
This article is owned by Tech Times
Written by Fran Sanders
