The Financial Conduct Authority (FCA) of the United Kingdom is taking its time adding digital currencies to its list of regulated industries and markets.
According to the Financial Times, while all authorities are trying to align with Chancellor Rishi Sunak’s aspirations to make the UK an attractive crypto hub, the FCA feels players in the industry need to make any changes to be governed.
The FCA’s chief, Charles Randell, warned the market not to get too excited about regulating “purely speculative crypto coins.” Randell stated that crypto service offering enterprises seeking permission or licensing have a lot of work ahead of them, implying that the agency’s approval will not come easily.
The United Kingdom, like other sophisticated economies, is caught between embracing crypto, particularly for the innovative technology that underpins it, and outlawing it because of its speculative nature, vulnerability to manipulation, and potential for money laundering.
While every country, including the United Kingdom, aspires to be at the forefront of financial evolution, coordinating the activities of all watchdogs can be a huge obstacle. According to Randell, the FCA has independence in its regulatory approach, a direct response to appeals from prominent crypto personalities for the government to encourage the FCA to become more crypto-friendly.
Randell is particularly concerned about the amount of money the government will require to supervise the crypto industry fully. Unfortunately, this resource is not always readily available.
Regulators worldwide are looking into ways to bring the cryptocurrency ecosystem under control and make it secure for the common investor. However, while other countries, such as Switzerland and the United Arab Emirates (UAE), have established their crypto routes, the UK is still figuring out how to do it right when it comes to space, which could take some time.