According to the British Financial Conduct Authority (FCA), the United States and the United Kingdom will boost their cooperation on cryptocurrency regulation. The FCA noted that before now, most businesses would have argued for lesser regulation.
However, recent occurrences have changed their minds. Now, these investors value and recognize the fact that regulations exist to create clarity.
U.S. and U.K. To Boost Cooperation on Crypto Regulation
Nikhil Rathi, head of the U.K. ‘s FCA, spoke about the regulator’s regulatory objectives on July 13th. The FCA head added that cryptocurrency presents both potential and hazards.
According to him, the mandate of the FCA is tied to regulating AML practices on platforms. They have followed these guidelines for both foreign and UK-based firms.
Furthermore, Rathi said the United States and the United Kingdom would work together on crypto regulation. Both nations would boost cooperation on stablecoins, CBDCs, and market policies that are crypto-related.
Rathi went on to mention the FCA’s “Cryptosprints,” which brought over 200 participants in 2022. The FCA noted that the Cryptosprints event helped to gather opinions about the crypto industry.
With these opinions, the regulator learned about the state of the crypto market and the regulation it needs. The U.K.’s financial regulator added that:
“Crypto participants now see the needs for a crypot regulatory framework for digital assets. Also, they want a gradual regulation process. This is so the regulation can adapt to the changing nature of digital assets. Also, it would give investors and businesses time to prepare for regulation.”
FCA Supports Ethical Usage Of Modern Technologies
In addition, the FCA head said the organization supports the ethical usage of modern technology. Hence, it will ensure that such technologies don’t come at a price.
Therefore, the regulator would fight for the protection of consumers and financial stability in the market. In May, the Queen’s Speech revealed the govt’s legislative program for the upcoming parliamentary year.
The country wishes to face major areas in the crypto sector. One of the crypto laws would handle two major areas. This includes the safe use of cryptocurrency and resilient licensing to technology companies.
Another major goal is the endorsement of powers to regulatory bodies. This would allow them to easily capture crypto assets and reclaim them. This is because crypto assets are the primary means utilized for fraud.
Additionally, In April, the British authorities launched a comprehensive strategy for crypto. The scheme aims to transform the nation into a major hub for cryptocurrency.
As a result, the country calls for a flexible framework for regulating crypto and stablecoins. The U.K. also plans to partner with the Royal Mint. The purpose is to develop an NFT that will be released by summer.