The UK’s Financial Conduct Authority (FCA) has defended its strict registration requirements for crypto firms, emphasizing their necessity to protect the financial system from risks like terrorism, organized crime, and human trafficking.
Rejecting calls to lower standards, the FCA warned that relaxing these measures could undermine market safety. Crypto firms are held to the same high standards as traditional financial institutions.
Despite pre-application support, only 13% of crypto firm applications were approved last year, highlighting the tough regulatory environment.
In a related crackdown, the FCA prosecuted its first case of illegal crypto ATMs in September 2023 as part of its efforts to combat unregulated activities. Further actions are expected based on ongoing investigations.
In March 2024, the UK’s Financial Conduct Authority (FCA) warned financial influencers, or “finfluencers,” against providing misleading advice, especially regarding meme coins. The FCA stressed that advice must be clear, balanced and include proper risk warnings to help individuals make informed decisions.
The regulator also highlighted the responsibility of firms to ensure their marketing promotions, including those by influencers, are accurate and do not contribute to the spread of misinformation or “fake news.”
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