Cryptoasset scams reported to the FCA doubled in 2021, according to research

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Cryptoasset scams reported to the FCA doubled in 2021, according to research

The number of cryptoasset scams reported to the Financial Conduct Authority (FCA) more than doubled in 2021 according to new research. Capital Bloc

The number of cryptoasset scams reported to the Financial Conduct Authority (FCA) more than doubled in 2021 according to new research.

Capital Block, the cryptocurrency consultancy firm, uncovered via a freedom of information request that the FCA received 6,372 reports of scams in 2021, up from 3,143 the year before.

That’s a steep rise from 2017 when the FCA received no complaints at all.

The consultancy said it isn’t surprised by the increase in scams, given the “relative nascency of the sector.”

Cryptos have boomed in recent years, with the volatility in the market creating an environment that breeds high risk, high reward opportunities.

It said there have been numerous cases of infamous crypto scammers, such as ‘The Cryptoqueen,’ who claimed to have “invented a new cryptocurrency and then convinced individuals to invest billions in the currency.”

Capital Block, which predominantly advises organisations on non-fungible token strategies, said that nobody is immune to the scams, with large global brands such as Barcelona and Manchester City “jumping the gun” following recent failed crypto projects.

“Like many new and unregulated activities, investors of all sizes need experienced advice and guidance because there will always be a small number of people seeking to exploit a lack of knowledge and education among investors,” said chief executive Tim Magnall.

“It always come back to due diligence. Whether you’re an individual or corporate investor, or an organisation looking to launch a cryptocurrency or NFT, you need experienced, sound advice,” Magnall added.

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