The Financial Conduct Authority (FCA), the financial watchdog in the United Kingdom, wants to collaborate with cryptocurrency businesses to create an industry-specific regulatory framework.
At the City Week conference in London on April 25, FCA Executive Director Sarah Pritchard stressed the importance of collaboration when it comes to crypto laws.
Formerly regarded as a sort of “alternative rebellion”, Pritchard remarked that crypto is becoming increasing mainstream — hence why the UK is looking to “construct a new regime” for the digital currency.
“Let’s work together, to shape our rules and regulations to benefit markets, consumers and firms as crypto goes from niche to mainstream.”
Sarah Pritchard, Executive at Financial Conduct Authority (FCA)
The UK’s financial arm Treasury has started a crypto consultation in February to get input from interested parties on how to regulate the industry. “We want industry’s input to make sure we get the future regulatory regime for crypto assets right,” said Pritchard.
Along with the Treasury, the FCA is a major regulator of cryptocurrencies in the nation and has been responsible for registering cryptocurrencies companies that wish to operate in the country.
According to Pritchard, the consultation stated that the FCA may host a new authorization regime for cryptocurrency companies, including international corporations, which would be “uncharted territory” for them. It also has plans to introduce a promotion regime for digital content.
This latest development is rather surprising as the FCA infamously had a skeptical view towards cryptocurrency before this, constantly warning consumers about the possible dangers of the industry. According to Pritchard, 195 of the crypto applications that the FCA received from businesses wishing to register with them were either rejected or withdrawn. There are just 41 crypto companies that have registered with the FCA.
However, as of late, it would seem that the FCA has decided to put their skepticism aside and started listening to the crypto industry — suggesting a possible positive turn of event.
