The UK’s Financial Conduct Authority (FCA) is adopting a balanced approach to regulating cryptocurrencies, blending elements of traditional finance with decentralized finance to ensure effective oversight without stifling innovation.
Matthew Long, Director of Payments and Digital Assets at the FCA, emphasized the importance of this approach at a recent summit.
“What we are trying to do is take the best of traditional finance and understand the structure of the system we have.”
Long highlighted the FCA’s efforts to integrate proven regulatory practices while adapting to the unique challenges of the crypto space. He also stressed the need for tailored approaches to address risks like money laundering in both centralized and decentralized finance sectors.
The FCA’s proactive engagement includes approving applications from crypto firms and enhancing capabilities to monitor market abuse, signaling the UK’s commitment to fostering a regulated yet vibrant crypto market.
In August 2023, the FCA approved registrations for 38 crypto firms out of 300 applications since 2020. Simultaneously, it’s ramping up efforts to combat crypto market misuse and illegal advertising.
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