The Financial Conduct Authority wants input from crypto companies on shifting forward with regulations.
The United Kingdom's financial regulator, the Financial Conduct Authority (FCA), wants to work together with crypto firms to evolve a regulatory framework for the industry.
On April 25, FCA Executive Director Sarah Pritchard told at London’s City Week convocation pointing out the need for cooperation on crypto regulations.
“ We want the industry’s input to make sure we pick up the future regulatory regime for crypto assets right, ” she spoke:
“Let’s work together, to shape our rules and regulations to benefit markets, consumers and firms as crypto goes from niche to mainstream.”
She referred to crypto as a “one-time symbol of alternate rebellion, ” but acknowledged that it has “ become additionally widespread. ”
“ Effective early engagement supports rules that profit all and helps enterprises be prepared when rules come into force, ” she added.
Pritchard mentioned a warning published by the FCA to crypto investors a week before the FTX collapse in early November but added, “We have always been open to innovation, ” says:
“Crypto assets and blockchain offers opportunities for more efficient and innovative financial services and products.”
The shift is in stark contrast to the path across the pond in the United States. Those in the crypto industry in America claim local financial regulators are making every effort to quash the crypto sector with enforcement actions as opposed to evolving significant regulations in collaboration with industry leaders.
Pritchard noted the FCA’s responsibilities are restricted to making assured that crypto enterprises that operate in the U.K. comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) legislation.
“ Only when the government legislates will we've furthermore powers to regulate crypto, ” she added.
Related UK’s FCA hints at why it’s only given 15 of crypto enterprises the regulatory nod
According to the report, the FCA has supported crypto enterprises and has registered 41 companies of all sizes, still, nearly three-quarters of the 195 total enrollments from overseas enterprises were rejected or withdrew their applications for a U.K. license.
The reports also mentioned that “ tangible change ” will be near in the form of legislation for crypto promotions and advertising high-threat investments. Current advertising rules carry heavy punishments for companies that breach them.
“ This will near into our remit once the government legislates, and enterprises will have four months to implement the changes, ” she told. “ The rules will be issued after the legislation is set up forward. ”
The FCA has similarly been working nearly with the government on its proposals to regulate stablecoins, Pritchard remarked.
In early March, FCA officials told the government that crypto rules were inevitable. The regulator is trying to push through the Financial Services and Markets Act which was presented in July and amended in October to involve crypto rules.
(MARTIN YOUNG, Cointelegraph, 2023)