The crackdown on illicit crypto activities continues and the United Kingdom’s Financial Conduct Authority (FCA) has taken an additional step in that direction. We at Voltcoins wish to inform you on any matter that could impact the cryptocurrency industry, so that your decision-making process is more fact-based. That’s why we feel it is imperative for you to understand this latest measure.
Today our focus shifts to the FCA warning to companies that have not yet registered. We’ll talk about the FCA, explain the latest move and then reiterate why it’s best to work with an authorized crypto exchange.
What is the FCA?
The Financial Conduct Authority (FCA) is the regulatory body overseeing financial markets and firms in the United Kingdom. Established in 2013, the FCA operates independently of the UK government and is responsible for ensuring the integrity, transparency, and fairness of the country's financial sector.
With a primary focus on consumer protection, market integrity, and competition, the FCA plays a crucial role in maintaining trust and stability in the financial industry. It regulates a diverse range of entities, including banks, investment firms, insurance companies, crypto firms, and other financial service providers.
Through its comprehensive oversight, the FCA aims to foster innovation while safeguarding the interests of consumers and promoting a robust and trustworthy financial environment in the UK. Whether through setting standards, conducting investigations, or enforcing regulations, the FCA's mission is to create a financial landscape that serves the public interest.
FCA issued a warning to crypto firms
In the beginning of October 2023, the FCA issued a new warning targeting 146 crypto companies. The move follows the rollout of the new promotional rules, requiring companies in the space to register with the regulator.
New rules are meant to curb illegal financial promotions targeting UK customers. Many times we’ve witnessed fraudulent crypto firms trying to persuade new clients to invest funds by providing them with too-good-to-be-true offers.
Voltcoins puts an emphasis on transparency throughout the whole process of buying crypto. However, many other companies do not operate in the same manner. These exchanges are the ones targeted by the latest warning. As of late, some entities chose to halt operations for UK customers, as a result of the new regulatory requirements. Yet even in such an environment, an authorized crypto exchange is still the better choice, for several reasons.
Advantages of working with an authorized crypto exchange
As a crypto holder actively using crypto exchange services, you want to work with an authorized crypto exchange because such entities comply with rules set out by the local regulator. Among the main advantages, we can highlight transparent services, attention to customer needs and strong financial security.
While many people today do not understand the importance of working with an authorized crypto exchange, the increase in regulatory pressure should be a strong enough incentive to change this approach. When you work with a body that has an official green light to operate, it means that this body adheres to standards in terms of security and transparency. In today’s financial realm, we cannot emphasize the importance of this factor enough.