 is also looking at seven other reports from investors regarding how cryptocurrency businesses operate){kind=link}
Investment watchdogs are investigating 24 cryptocurrency firms in the UK which may be operating illegally.
The Financial Conduct Authority (FCA) is also looking at seven other reports from investors regarding how cryptocurrency businesses operate.
The FCA confirmed the investor inquiries after a freedom of information inquiry.
“We want to determine whether they might be carrying on regulated activities that require FCA authorisation,” said a spokesman.
“The response added: ‘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.”
Suspected scams
The FCA also explained that the investigations do not relate to regulating cryptocurrencies, but to the activities of the firms.
The complaints are from customers of firms with concerns about their digital currency investments.
Two are suspected scams – one involving ripple and litecoin.
In two cases, investors were barred from accessing their accounts – one over security issues and the other triggered a complaint that an online investment platform is rigged.
An investor is also disgruntled that their employer has ordered them not to invest in digital coins, which they feel is ‘illegal’.
Another investor is worried about the volatile nature of the markets for Ripple, Bitcoin and Ethereum.
High risk worries
The final complainant feels cryptocurrencies are too high risk and feels the FCA should take more action to regulate them.
The name of the person making the freedom of information request was withheld by the FCA, but is suspected to be a top accountancy firm.
Their inquiry read: “Could you please provide a list of all complaints the FCA has received with regards to cryptocurrencies over the last 12 months.
“In each case, could you provide details of — what cryptocurrency was involved, what the nature of the complaint was (ie scam, false advertising), and whether the complaint was lodged by an individual or a company.”
The FCA responded that the database of the FCA consumer contact centre was searched for the term ‘cryptocurrency’ – and listed the details of the seven calls received.
The FCA has investigated other cryptocurrency complaints and issued warnings about the danger of investing in initial coin offerings (ICOs) and cryptocurrency contracts for a difference (CFDs)