The FCA notes that the entities threaten the financial system while also warning banks and payment firms against engaging with the businesses, Reuters reports. In January, the FCA enacted new regulations that require businesses in the crypto space to get full certification from the regulator before operating. In addition, the regulator introduced a temporary licensing plan for firms whose applications are pending approvals to continue trading. The new law followed the appointment of the anti-money laundering and counter-terrorist financing supervisor of cryptocurrency firms. However, only a section of the businesses has complied with the new directive.
Males over 35 years most vulnerable
According to Stewart, the unregistered businesses might take advantage of potential investors who fear missing out on the cryptocurrency rally. He notes that males over the age of 35 years are the most vulnerable to fall victims. Notably, about 2.5 million UK adults hold various digital currencies, with a majority acquiring the assets amid the coronavirus pandemic. [binance]
