The number of investigations conducted by the UK financial regulator FCA into the cryptocurrency sector increased by 74%, in comparison with the last year, reads the international law firm Pinsent Masons report. So far, the FCA has investigated a total of 87 firms over the past 12 months, while only 50 firms were investigated during the previous year.
David Heffron, partner at Pinsent Mason, claimed that “for cryptocurrency businesses acting lawfully, these statistics will be encouraging”, since it helps to push out fraud from the market:
"The FCA's crackdown on businesses operating on its regulatory perimeter will instill a degree of confidence that products reaching consumers are less likely to be scams."
Previously, the FCA reported that individuals in the UK might have lost about £27 million ($33.26 million) to cryptocurrency and forex investment scams in the past year. Meanwhile, amidst the battle with fraudulent business, FCA also investigates legitimate cryptocurrency firms to enforce authorization.
The US regulator takes a more active approach. As COIN360 previously reported, last week the SEC reached a settlement with Nebulous for an unregistered offering and charged Block.one with $24 million penalty.