The UK Financial Conduct Authority, on Tuesday, warned consumers against unregistered crypto asset companies domiciled in the country.
The FCA, who acts as a watchdog for UK’s financial industry, described the unlisted crypto-asset firms as “volatile” and “unregulated” claiming that they pose a serious risk to consumers.
“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 firm, consumers,”
“This is a very real risk so we are worried about that.” Mark Steward, FCA’s head of enforcement and market functions explained to City and Financial according to Reuters.
Newsbsc reported last week that ownership of crypto asset has significantly increased in the UK.
It is only commonsensical that the FCA warn consumers about the risks involved.
Mark Steward believes that the “fear of missing out” is the driving force behind the spike in interest.
“The reason many are investing now is because they have a fear of missing out on what might be a boom,” Mark said. “Leaving aside how volatile these instruments actually are, it has tulip mania written all over it.”
All crypto-asset firms are mandated to register with the Financial Conduct Authority before operating in the UK, but reports suggest some companies are yet to fulfil that obligation.