Authorities in the UK continue to show a positive approach to the crypto industry.
The Financial Conduct Authority (FCA), a financial regulatory body in the United Kingdom, is eager to collaborate with crypto companies to create the industry's regulatory framework.
FCA Executive Director Sarah Pritchard expressed the need for a cooperative approach to crypto regulations during her speech at London's City Week conference on April 25.
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Pritchard called for industry input to ensure the future regulatory regime for crypto assets is well-crafted, urging stakeholders to work together as crypto transitions from "niche to mainstream."
We want the industry’s input to make sure we get the future regulatory regime for crypto assets right. Let’s work together, to shape our rules and regulations to benefit markets, consumers, and firms as crypto goes from niche to mainstream.
Once considered a symbol of "alternative rebellion," Pritchard acknowledged that crypto has become increasingly widespread. She emphasized that early engagement enables better regulations that benefit everyone and helps firms be prepared for when those regulations take effect.
Referencing the FCA's warning to crypto investors prior to the FTX collapse in early November, Pritchard highlighted the regulator's openness to innovation. She recognized the opportunities presented by crypto assets and blockchain for more efficient and innovative financial services and products.
This approach contrasts significantly with the US, where crypto industry members claim financial regulators are stifling the sector through enforcement actions instead of collaborating with industry leaders to develop meaningful regulations.
Pritchard pointed out that the FCA's current responsibilities are limited to ensuring UK-based crypto firms comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) laws.
Only when the government legislates will we have more powers to regulate crypto.
It is worth noting that the FCA has currently registered 41 crypto companies of various sizes.
Pritchard also discussed upcoming legislation concerning crypto promotions and advertising high-risk investments, which will introduce "tangible change." Current advertising rules impose severe penalties for non-compliance.
At the end of her speech, Pritchard highlighted that FCA works closely with the government on stablecoin regulatory proposals.
The FCA's eagerness to work with the crypto industry signals a forward-thinking approach that could lead to more effective and well-rounded crypto regulations in the UK.
