In order to go ahead with legislation, the Financial Conduct Authority is seeking feedback from the cryptocurrency industry.
The Financial Conduct Authority (FCA), Britain’s financial regulator, is keen to collaborate with crypto businesses to establish rules for the sector.
FCA Executive Director Sarah Pritchard emphasized the need for collaboration on crypto laws during her April 25 speech at London’s City Week conference.
As crypto moves from the fringes to the mainstream, “let’s work together to shape our rules and regulations to benefit markets, consumers, and firms.” She said that crypto was “once a symbol of alternative rebellion,” but now that it’s “more widespread,” she has changed her mind.
Before the FTX crashed in early November, Pritchard highlighted a warning given by the FCA to crypto investors, but he also said, “we have always been open to innovation.”
The decision stands in sharp contrast to the one taken on the other side of the Atlantic. Financial authorities in the United States, according to some working in the cryptocurrency business, are actively trying to put an end to the industry via enforcement measures rather than working with industry leaders to craft effective rules.
Pritchard stressed that the Financial Conduct Authority’s role is confined to monitoring UK crypto businesses for compliance with AML and CTF regulations.
Legislation governing the marketing of cryptocurrencies and other high-risk investments was another “tangible change” cited by Pritchard. Companies that violate the current advertising restrictions face severe penalties.
It will be within our purview once the government passes legislation, and businesses will have four months to make the necessary adjustments, she said. After the bill is introduced, the regulations will be released.
At the beginning of March, FCA representatives testified before Congress that crypto laws were coming. The Financial Services and Markets Act, which was presented in July and revised in October to incorporate crypto laws, is a piece of legislation that the regulator is attempting to force through.
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