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FCA will oversee crypto companies.

 

crypt currencies
The new powers will allow the FCA to oversee crypto more broadly, including monitoring how companies operate and advertise their products, three people familiar with the Treasury’s thinking said. They added there would be restrictions on selling into the UK market from overseas and that the proposals would set out how crypto companies can be wound down. The government’s aspiration to become a global hub has come into sharp focus in the intervening months as the crypto industry became embroiled in crisis after crisis. «Yes, there are questions about the future of crypto, but we’d be foolish to ignore the potential of the underlying technology,» he told an event in Edinburgh.

The government would be «consulting on a world-leading regime for the rest of the crypto-asset market later this year». «The government has already taken steps to bring certain crypto assets activities into the scope of UK regulation and will consult on proposals for a broader regulatory regime.» The UK launched a consultation on crypto regulation in 2021, mainly focused on stablecoins. However, some government insiders believe the consultation timetable could slip into early 2023 because of «fast-moving events» in the industry. Last week, FCA chief executive Nikhil Rathi told the FT’s banking summit that his agency was already being «proactive» in areas where it does not yet have powers, including publicly warning about «the risks of investing in crypto, the potential to lose all your money».

He added that 85 per cent of the firms who applied to join the regulator’s crypto register did not pass the FCA’s anti-money laundering tests.

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  1. Sylvia6 December 2022 at 20:10

    The last paragraph in this article is not surprising but still shocking. 85% is a huge number and goes to show us how full of scams and doubtful cryptos and companies the whole crypto market is.

    ReplyDelete

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