United Kingdom Wants Crypto Firms to Be More Responsible as FCA Seeks More Regulatory Powers

UTC by Mayowa Adebajo · 2 min read
United Kingdom Wants Crypto Firms to Be More Responsible as FCA Seeks More Regulatory Powers
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The FCA has been continuosly warning firms that are linked with crypto to be cautious in their business dealings.

The United Kingdom’s Financial Conduct Authority (FCA) is currently formulating a new set of requirements for crypto-based firms in the region. According to the regulator, it might no longer suffice that a firm has cleared anti-money laundering requirements and obtained an operational license.

So, to this end, the FCA is seeking to create new rules that will foster prudence among crypto firms. The FCA revealed the plans in its annual report which was published Thursday.

However, the FCA also noted that the new prudential rules it intends to float will only come to light when the Treasury and Parliament eventually bring those activities under its regulatory authority.

As of publication, what timeline the FCA will receive this regulatory power remains unclear.

United Kingdom Eyes Becoming a Global Crypto Hub

Meanwhile, it is worth mentioning that the FCA has already put a prudential regime in place for investment firms. That includes asset managers, trading firms, and even fund managers spread across the United Kingdom.

The regime requires first that firms make certain that they have enough capital. Then, they identify risks to their business and show proof of adequate reserves to mitigate harm.

For what it’s worth, the FCA has been warning firms that are linked with crypto to be cautious in their business dealings. That includes those with direct or indirect exposure to crypto. And as a fact, the regulator issued a warning statement to such firms last year, asking them to “have appropriate systems and controls to counter the risk of being misused for financial crime”.

Interestingly, the FCA has just been saddled with some new regulatory powers under a recently passed financial markets bill. And as it stands, the regulator might well be on the way to becoming the country’s key watchdog. That is as far as crypto is concerned.

More importantly, the various formulations will also help the country to achieve its aim of becoming a global crypto hub.

Cryptocurrency News, News
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