The financial conduct authority (FCA) confirmed that they are open to collaborating with crypto firms ahead of crypto regulation framework development.
The United Kingdom (UK) is Crypto friendly region for the crypto sector but the dominant financial sector regulatory body UK FCA is a very strict crypto regulatory agency. Over the past few years, many crypto companies alleged that the FCA failed to give regulatory approval for the new crypto companies and that increased the monopoly of some players in the UK’s crypto sector.
Recently FCA executive Director Sarah Pritchard said that the FCA wants to work with the local crypto service provider companies to develop a crypto regulatory framework.
“The U.K. has been looking to construct a new regime for “crypto – that one-time symbol of alternative rebellion – (that) has become more widespread,” Pritchard said.
Earlier this, In Feb 2023, the UK government’s financial arm, the Treasury, launched a digital assets consultation to collect opinions & suggestions from the crypto industry players.
It is worth it to note that FCA & Treasury are two top financial regulatory bodies in the UK, which are responsible for crypto regulation. And such statements by these financial regulatory bodies are showing that the UK is ready to develop & bring a clear crypto regulation framework for England, Scotland, Wales, and Northern Ireland.
FCA Warnings to Crypto Investors
No doubt that the FCA & Treasury regulates this innovative sector & provides regulatory approval for the crypto companies but these regulations handle crypto sector regulation on behalf of traditional financial rules, which are not enough to ensure the safety of Crypto investors.
In late March of this year, the FCA agency released a warning announcement for all the UK’s crypto investors and said that people should remain ready to lose their all money before investing in cryptocurrencies and also confirmed that the crypto sector is highly unregulated under the jurisdiction of the UK.