Home News UK’s FCA Investigates 24 Cryptocurrency Firms As Bitcoin Price Dips

UK’s FCA Investigates 24 Cryptocurrency Firms As Bitcoin Price Dips

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The U.Ok.’s Financial Conduct Authority (FCA) has opened up 24 investigations into cryptocurrency companies, a Freedom of Information request has revealed.

In a report from the Financial Times, the U.Ok.’s prime monetary watchdog additionally confirmed that it had opened seven whistleblower reviews regarding digital foreign money firms thus far this 12 months.

The FCA has confirmed that it’s trying into the actions of 24 unauthorised cryptocurrency companies to ‘determine whether they might be carrying on regulated activities that require FCA authorisation.’

“If we conclude that they are, then we may investigate and take action, identifying and determining the most serious matters which pose the greatest risk to consumers,” the regulator added.

This transfer from the FCA comes at a time when the U.S. Department of Justice (DoJ) has launched a prison investigation into whether or not merchants are manipulating the value of bitcoin and different cryptocurrencies.

In a report from Bloomberg, the DoJ is trying into methods which may be used to bump up market costs akin to spoofing, which is when merchants flood the market with faux orders to trick merchants into shopping for or promoting. Wash buying and selling is one other method, which is when there’s a misunderstanding of market demand when a dealer buys towards themselves, prompting others to comply with swimsuit. According to the report, prosecutors are working with the U.S. Commodity Futures Trading Commission (CFTC), a monetary regulator that oversees buying and selling towards cryptocurrencies.

The crackdown comes amid value swings in worth, the hotly debated challenge of regulation, and an growing development of doubtful preliminary coin choices (ICOs) that fail to dwell as much as their so-called guarantees. To spotlight the dangers that buyers face with a majority of these fundraising platforms, the U.S. Securities and Exchange Commission (SEC) just lately launched a fake ICO website – HoweyCoins.com – designed to teach would-be buyers on what they need to look out for earlier than investing right into a rip-off.

These latest market circumstances have seen a hunch within the value of bitcoin. At the time of publishing, the digital foreign money is buying and selling beneath $7,500, at $7,482, representing an 8.43 p.c decline previously seven days, in response to CoinMarketCap. This drop in value is worrisome as bitcoin faces closing this week beneath the 50-week shifting common. According to Michael Baker, ETX Capital Analyst and Crypto Specialist, the battle is now on between the Bulls and Bears.

“This is a significant development for bitcoin, we have only seen a few weeks over the last year where the price has dropped below the 50-week SMA,” he mentioned. “Sustained holds and moves further away from $7.6k will no doubt put the jitters in the bitcoin bulls.”

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