The UK FCA Wants To Promote Crypto Market Supervision
- Sarah Pritchard, executive director of the FCA, said that the agency plans to strengthen the supervision of the crypto market.
- The companies will have 4 months to rectify this.
- In addition, the FCA has been working closely with the government to develop proposals to regulate stablecoins.
According to the UK Financial Conduct Authority’s (FCA) official website, Sarah Pritchard, executive director of the FCA, stated at the London City Week meeting that the FCA intends to strengthen supervision of encryption marketing and that the rules will be announced after legislation is proposed.
This will fall under our purview once the government passes legislation, and companies will have four months to implement the changes. After the legislation is introduced, the rules will be published.
“We want industry’s input to make sure we get the future regulatory regime for crypto assets right. Let’s work together, to shape our rules and regulations to benefit markets, consumers and firms as crypto goes from niche to mainstream,” Pritchard said.
Furthermore, the FCA has been collaborating closely with the government to develop proposals to regulate stablecoins that can be used for payments, as well as to hold consultations on the regulation of the broader crypto asset regime, on which the public can comment until April 30. The Ministry of Finance may also decide to implement a reciprocal registration system for foreign crypto companies in the future.
Pritchard stated that she hopes to solicit industry feedback in order to establish the proper regulatory system for digital assets.
She described cryptocurrency as a “one-time symbol of alternative rebellion” but admitted that it has grown in popularity.
The move contrasts sharply with the approach taken across the pond in the United States. Those in the American crypto industry claim that local financial regulators are attempting to crush the crypto sector through enforcement actions rather than developing meaningful regulations in collaboration with industry leaders.
According to Pritchard, the FCA’s responsibilities are limited to ensuring that crypto firms operating in the United Kingdom comply with anti-money laundering (AML) and counter-terrorism financing (CTF) legislation.
The FCA has supported crypto firms and registered 41 companies of various sizes; however, nearly three-quarters of the 195 total registrations from overseas firms were rejected or withdrawn.
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