The UK’s financial regulator, the Financial Conduct Authority (FCA), has been continuously facing criticism from British lawmakers and the crypto industry members for their stand on strict regulations and, therefore, seemingly a utopian desire to become a crypto hub in the next few years. For instance, one major claim against FCA entails the slow approval of licences for crypto firms.
However, the latest news indicates that the UK is moving from the piecemeal approach to wholesome regulation. This comes after the House of Commons passed amendments to the Financial Services and Market Bill on 25th October 2022, featuring an alteration to bring forward cryptocurrencies into the scope of regulated financial services. It means crypto firms would have to play by the government rules to protect consumers. It also makes them prone to fines or losing licences if they fail to comply.
The authorities shouldn’t divert from the idea and vision of making the UK an international crypto and digital assets hub. Considering all the criticism that FCA is facing and without denying its validity, I suggest we should take a look at the situation from a different angle.
There is Need for Wholesome Regulation
Interest in digital assets has been rising, attracting the attention of policymakers and regulators worldwide. We have seen various regulatory advances, such as the Market in Crypto-Assets (MiCA) provisional agreement in Europe and the Framework for International Engagement on Digital…
