UK Financial Watchdog Calls For Collaboration With Cryptocurrency Industry

In a new development, the Financial Conduct Authority (FCA) of the United Kingdom plans to create a robust crypto regulatory framework. The financial regulator seeks crypto firms’ input to develop the necessary rules.

The FCA Executive Director Sarah Pritchard disclosed the agency’s plans on crypto regulations on April 25 during London’s City Week conference. Director Pritchard pointed out the importance of cooperating with crypto companies in developing regulatory standards in her speech.

She noted that inputs from the digital assets industry would ensure the right regulatory regime for crypto in the future.

Regulators And Crypto Companies To Work Together

While speaking at the conference, executive director Pritchard stated that working with the industry would result in more productive rules. The outcome will benefit digital asset users, markets, and related companies even as crypto evolves into the mainstream. 

Also, early engagement and support for the regulations will assist digital firms during implementation. The director likened digital assets to a one-time representation of an alternative rebellion. However, digital assets have gained more popularity over the years. 

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Additionally, Director Pritchard acknowledged the limited operational powers of the FCA. Currently, the FCA ensures that digital asset entities in the UK comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) rules.

In her words, the financial regulator will cover more regulatory ground in digital assets depending on the delegated power from government legislation and further cited the FCA’s support for the crypto industry. 

Notably, the regulator has registered about 41 digital firms of different sizes. Up to three-quarters of 195 other registrations from overseas companies were denied or withdrew their application for a UK license. 

Moreover, the director claimed that the FCA issued a warning to digital investors a week before the implosion of the FTX exchange in November 2022.

Contrasting Crypto Regulations In The US

While the UK regulator is open and welcomes digital asset firms’ input in developing its regulatory framework, United States regulators use a different approach. 

Digital regulation in the US is getting harsher and tougher through strict enforcement actions from regulators like the Securities and Exchange Commission (SEC).

A report from Forbes on April 3 cited David Sacco’s comment about US regulators and their approach. Sacco stated that US regulators are busy regulating digital platforms instead of digital assets.

Also, in a YouTube channel, ‘All-In podcast’ on April 22, a crypto investor, Charmath Palihapitiya, stated that crypto is dead in America.

The comment was in response to the report that the Coinbase digital assets exchange is considering relocating from the US. The investor maintained that the activities of US regulators against digital assets are gradually choking the industry to death.

Palihapitiya mentioned that SEC Chair Gensler blames digital assets for the recent US banking crisis. To him, all the US authorities are pointing fingers at the digital industry.

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