The UK Financial Conduct Authority (FCA) has announced a significant increase in financial crime, in particular with the participation of cryptocurrencies. This statement was made by the chairman of the board of FCA Charles Randall.
According to the regulator, serious concern is the spread of fraudulent schemes to deceive private traders and investors. According to the report on crime in England and Wales for the tax year 2018/19, of all the crimes committed (11.2 million), one third, namely 3.8 million cases, are occupied by such financial crimes.
Investment fraud, when people fraudulently deprive them of their savings, is one of the largest types of financial crime in terms of the size of the damage, Charles Randall declared during the Cambridge Economic Crime Symposium.
In mid-2019, the FCA released a report that showed the dynamics of an increase in criminal activity in the field of cryptocurrencies and in the Forex markets. According to the regulator, in 2018 the number of scams increased from 530 to 1834, and the total amount of investor losses amounted to £ 27 million ($ 34 million). In almost all fraudulent schemes (81%), included operations with cryptocurrencies.
On the FCA side, the response to these negative trends may be steps in relation to some high-risk investment proposals. This category may include a change in the rules for p2p lending, as well as a ban on cryptocurrency derivatives trading for individual investors.