UK watchdog responds to criticisms about crypto regulation
As the United Kingdom works towards regulating the cryptocurrency business, the Financial Conduct Authority (FCA) has lately been criticized for its handling of the industry, particularly its approval of new operators.
Reuters reported on September 30 that the agency replied to the criticism by stating that the severe measures are comparable to those in other countries.
According to Sheldon Mills, executive director for competition and consumers at the FCA, prospective operators continue to exhibit interest in the area despite the territory’s tight restrictions and initial rejection.
Notably, policymakers have been working to make the United Kingdom a worldwide crypto centre. In spite of this, they have highlighted FCA as a possible obstacle due to the allegedly delayed processing of license applications.
Recent cryptocurrency development has prompted the regulator to place a greater emphasis on verifying that prospective operators have sufficient measures to combat vices like as money laundering. New research from Finbold indicates that Brits have spent over £30 billion on cryptocurrencies so far, highlighting a portion of the rise.
Intriguingly, the FCA previously noted that almost 90 percent of bitcoin firms that sought clearance for their anti-money laundering systems withdrew their applications or were denied.
However, Mills emphasized that the agency is growing its workforce in order to expedite the issuance of rules.
Notably, the FCA resorted to registering crypto businesses anew, a move that prompted experts to express alarm over a mass departure of enterprises to more accommodating countries.
Similarly, FCA has expanded its regulatory power over existing firms in recent weeks. For example, the government recently issued a warning to bitcoin exchange FTX for operating without authorization in the United Kingdom.
After a protracted application process, the FCA also accepted the challenger bank Revolut’s request to provide crypto services in the United Kingdom.