The UK regulator is issuing an ultimatum to 111 unregistered crypto companies

The UK’s Financial Conduct Authority (FCA) has just taken another drastic step warning consumers about 111 crypto companies that are not registered with the FCA.

As of January 10, all UK-based crypto companies must comply with anti-money laundering and terrorist financing laws and register with the FCA to operate legally. However, many companies have not yet enforced this legal requirement.

Mark Steward, the head of enforcement for the FCA, confirmed on June 22nd that unregulated crypto firms pose a threat to customers, banks and payment companies.

We have many companies doing business in the UK without obviously registering. This is a very real risk so we are extremely concerned.

The FCA has compiled a list of more than 100 apparently active crypto companies that are not registered so that investors can verify that the company they are trying to do business with is not compliant.

The agency appears suspicious of the growing popularity of cryptocurrencies in the UK. According to a recent FCA poll, 2.3 million UK adults currently own cryptocurrency. Comparing the rise of cryptocurrencies to the Dutch tulips of the 1630s, Steward warns that the fear of missing out (FOMO) is driving many to invest in highly volatile assets.

The FCA has been very cautious on cryptocurrencies as government regulators put a ban on crypto derivatives platforms in January, and as of this month, all UK-based crypto asset companies must comply with AML regulations and register with the FCA.

The lack of processing due to the COVID-19 pandemic has led to a backlog in the processing of applications, and the FCA announced on June 3 that the last date for the provisional registration had been extended from July 2021 to March 2022. If companies don’t resolve it thoroughly, chances are they’ll get a bitter ending like Bybit this March.

See more: Bybit ceases UK operations, FCA steps in to disrupt crypto

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