Apr 26, 2023
FCA Invites Crypto Industry to Shape Regulatory Framework
The Financial Conduct Authority (FCA) of the United Kingdom is taking steps to collaborate with crypto companies to create a regulatory framework for the industry. On April 25, FCA Executive Director Sarah Pritchard addressed London’s City Week conference and spoke of the need to work with crypto firms to ensure the future of the industry.
“We want industry’s input to make sure we get the future regulatory regime for crypto assets right,” she said. “Let’s work together, to shape our rules and regulations to benefit markets, consumers and firms as crypto goes from niche to mainstream.”
Pritchard noted that the FCA’s responsibilities are limited to making sure that crypto firms 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 have more powers to regulate crypto,” she added.
The FCA has already registered 41 companies of all sizes, however, nearly three-quarters of the 195 total registrations from overseas firms were rejected or withdrew their applications for a U.K. license.
The FCA is also looking to introduce legislation for crypto promotions and advertising high-risk investments. This would include rules and regulations for NFT marketing, Twitter NFT marketing, and NFT promotion.
The FCA has been working closely with the government on its proposals to regulate stablecoins, Pritchard noted. In early March, FCA officials told the government that crypto regulations were inevitable. The regulator is trying to push through the Financial Services and Markets Act which was introduced in July and amended in October to include crypto regulations.
The move towards regulation is in stark contrast to the approach taken in the United States, where crypto industry leaders claim local financial regulators are making every effort to quash the industry with enforcement actions instead of developing meaningful regulations in collaboration with industry leaders.
It is clear that the FCA is taking a more proactive approach to the regulation of the crypto industry, and is looking to work with crypto firms to ensure that regulations are beneficial for all. This move is likely to be welcomed by those in the crypto space, as the introduction of regulations should provide more security for investors and more opportunities for crypto companies to grow and innovate.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.