The FCA has seen a 220 percent increase in inquiries about cryptocurrency scams.
The Financial Conduct Authority of UNJ’s FCA has reported a 222% increase in the number of people asking about crypto scams since April of 2022. The regulatory body had received 176 inquiries in 2020 April, but the number was up to 566 in March 2021.
This means more and more people are getting interested in the crypto market and being cautious while investing too. The FCA says this could be because younger people are more likely to invest in high-risk things while people above the age of 35 are much more careful.
Such inquiries are great as people are now more aware of the danger of investing in the crypto market in general and do not want to get scammed. 44% of people in cryptocurrencies are below the age of 34.
The FCA has always been critical of crypto and the risk that it poses for people. Since it is so new, even many tech-savvy individuals are having a problem getting a firm grasp of it as a concept.
They have said that they are critical of the crypto market due to the virtually nonexistent customer protection and the high price volatility. Add to that the complexity of the products and other related fees and charges.
The FCA says that although the returns may be high on the investment, customers should be fully aware of all the risks involved. Crypto has been facing the ire of many financial regulators, with most of them claiming it to be very risky for newer players.