The UK’s financial authority, the Financial Conduct Authority (FCA) monitors cryptocurrencies and blockchain companies to understand the integrities of the ecosystem, so they can craft an effective approach to using and regulating the technology. . The agency is currently investigating 18 companies working in the cryptocurrency industry.

According to the latest report published by British media, the investigation is due to the growing concern for the financial strength of the customer. Although the names of the 18 companies have not been disclosed, this is not a new process for FCA. The agency investigated 24 cryptocurrency-related companies in May and another 67 companies came under scrutiny in November.

After November 12, the FCA counted nearly 67 companies related to cryptocurrency, in which 2/3 of these surveys have been launched since May. FCA chief strategic officer Christopher Woolard insisted that “the crypto-asset posed potential harm” across the UK. With this, it also highlights the upcoming steps that the FCA, Bank of England and UK Treasury will take to encourage beneficial innovation by eradicating threats.

UK cryptocurrency regulation

The FCA has clarified its plans for the coming year:

“We will be working with the Bank of England and the Treasury as part of a task force to develop a reflection and publish a discussion paper later this year outlining our policy thinking on cryptocurrencies.. “

In April 2018, an official report noted that the FCA does not aim to regulate cryptocurrencies in the event that those crypto assets fall under regulated products or services. However, the current monitoring is part of the agency’s precautions against escalating ICOs and unregulated ecosystem loopholes. While 2018 saw a decline in prices, threats, ICO scams and other illicit activities appear to be on the rise.

Read more: UK government sets out cryptocurrency tax guidelines for individuals