The U.K. Financial Conduct Authority has launched investigations into 24 businesses dealing with cryptocurrencies to determine whether they need authorization from the regulator to conduct such activities, the Financial Times reported.
The regulator is also looking into seven whistleblower reports related to the asset class so far in 2018 alone, the report said, citing the FCA's response to a freedom of information request from accountancy and consulting firm Moore Stephens.
It comes as various global regulators have begun suppressing the freewheeling cryptocurrency industry, which has raised billions in 2017 through so-called initial coin offerings, amid growing concerns that virtual currencies are susceptible to manipulation by traders, the FT noted. U.S. regulators have already begun filing charges of fraud against various ICOs and launched criminal investigations into potential price manipulations, according to recent media reports.
The U.K. parliament's Treasury Committee has also started an investigation into cryptocurrencies and the distributed ledger technology it is based on, with the FCA saying in its response to the inquiry that it would "continue to monitor the appropriateness of the existing regulatory framework," the FT added.
The FCA, which is reviewing digital coins in tandem with the U.K. Treasury and the Bank of England, also warned about risks of market manipulation, money laundering and "exceptional" price volatility for retail investors in the cryptocurrency markets, according to the report.
In March, Bank of England Governor Mark Carney urged increased oversight of digital currencies and exchanges trading them.
