Key Takeaways
- The FCA currently has 48 registered and formerly registered cryptoasset firms under its purview.
- Crypto may be regulated as personal property in the U.K.
- The FCA says its ‘tough’ standards are to protect consumers and financial markets.
The U.K.’s Financial Conduct Authority (FCA) has defended its “too tough” approach to crypto regulation, responding to criticism that it harms innovation.
FCA on Crypto
As per the Oct. 21 post, the FCA’s head of payment and digital assets within its authorizations division, Val Smith, has highlighted that the FCA needs to maintain its standards to protect consumers and financial markets. She stated:
“Innovations built quickly on unsafe, unregulated and untrusted foundations become a house built on sand – likely to collapse.”
She elaborates that the FCA opts to work closely with government, industry, and other partners instead to ensure the crypto sector is being built on “study foundations.”
Smith argues that doing so gives cryptocurrencies a chance to flourish sustainably for the foreseeable future.
High Standards
Smith also concedes that the FCA has high standards but disagrees with their approach, which she describes as “setting the bar too high.” She explains that these standards allow them to tackle the illicit flow of money, which has major real-world implications in the realms of sanctions evasion, organized crime, terrorism, and others.
Furthermore, Smith argues that tackling crime and building consumer trust is important. If crypto is to succeed as a competitive sector in the U.K., it needs to adhere to the FCA’s “strong and universal standards.”
“We actively want to work with you. Engage with us early through our pre-application meetings and use the wide range of practical support we offer throughout the process.”
Acknowledging the challenge of establishing regulatory guidelines and rules around an industry as fast developing as crypto, Smith notes that the FCA is eager to develop them alongside the industry.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
