The number cryptoasset scam reports received by the Financial Conduct Authority more than doubled in 2021.
The regulator received 6,372 reports of scams in 2021, compared with 3,143 in 2020, according to a Freedom of Information Request submitted to the city watchdog by Capital Block.
Although investment in cryptoassets is not a regulated activity, certain cryptoasset companies have been subject to money laundering regulations since 2020, which means these firms must be registered with the FCA.
Crypto advertising, however, is not FCA-regulated, although the Treasury has previously announced that it will seek to extend the financial promotions rules to unregulated cryptoassets in the near future.
The regulator is also consulting on rules proposing to treat unregulated cryptoassets as a high risk investment for these purposes.
|
Calendar Year |
Reports to FCA of Cryptoasset scams |
|
2017 |
0 |
|
2018 |
991 |
|
2019 |
1,619 |
|
2020 |
3,143 |
|
2021 |
6,372 |
Source: FCA
An FCA spokesperson said consumers need to have confidence when making investment decisions and should check if the firms they are dealing with are authorised by the regulator before investing.
They said: “It’s important that consumers check who they are really dealing with before making an investment decision.
“Find out how to avoid scams on the ScamSmart website and get tips on investing safely on the InvestSmart website.”
Tim Mangnall, chief executive of Capital Block said it is a tough and complicated sector.
“I’ve personally been investing…
