The Financial Conduct Authority (FCA) in the United Kingdom has been actively working to protect investors in the digital asset environment.
With the UK having one of the toughest entry requirements for crypto businesses to operate in the country, it only makes sense that UK’s law enforcement is pulling its own weight at enforcing criminal activities related to digital assets.
Based on the official report by the Financial Conduct Authority (FCA), the agency is looking to actively protect investors from falling into the hands of scammers, and prevent any potential threats with new incentives like ScamSmart and InvestSmart.
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The regulatory entity has reportedly opened "over 300 cases relating to possible cryptoasset businesses not registered with FCA" over the past six months, with 50 of them currently being investigated.
In fact, the FCA unveiled that in 2020, during the period between April and September, it gathered 16,400 reports of potential scams in the digital asset environment. For this reason, the regulatory body has launched two campaigns for investors in the cryptocurrency market.
The ScamSmart campaign features tools and information on how to avoid fraudulent financial platforms, while InvestSmart offers basic information for new customers who are looking to participate in the investment process.
Executive Director of Markets at the FCA Sarah Pritchard spoke on the potential risks that linger around investments, stating:
"Before investing, check if you know who you are really dealing with, check if they are authorised by the FCA and do your research to understand the risks that might be posed."
With the FCA being the decision-maker on what cryptocurrency companies can operate within the United Kingdom, Her Majesty’s Revenue and Customs (HMRC) tax authority has recently been targeting DeFi platforms, which was not received well by the community.