According to the Financial Conduct Authority (FCA), the United States and the United Kingdom will strengthen their cooperation on cryptocurrency regulation. “In the past, forward-thinking businesses would have argued for less regulation. Now they recognize and value the fact that regulations exist to assist create clarity, according to the British regulator.
US and US to Improve Cooperation on Cryptocurrency Regulation
Nikhil Rathi, CEO of the U.K. Financial Conduct Authority, spoke about the FCA’s regulatory objectives on Wednesday at the Peterson Institute for International Economics.
The FCA chief stated that cryptocurrency presents both potential and hazards. “At the moment, our mandate is restricted to platform anti-money laundering regulations. These exacting guidelines have been followed, just as we would for any other company wishing to enter the UK market.”
Added the regulator:
The U.S. and U.K. will deepen ties on crypto-asset regulation and market developments — including in relation to stablecoins and the exploration of central bank digital currencies.
Rathi continued by mentioning the FCA’s “Cryptosprints,” which attracted close to 200 participants earlier this year. The FCA stated on its website that the events’ goal was to gather opinions from the industry about the state of the market and the creation of a suitable regulatory framework.
Participants expressed a strong priority for a regulatory framework for cryptoassets, according to the chief financial regulator. They also want gradual regulation so that it can adapt to the changing nature of crypto assets and give businesses and investors time to get ready.
In the past, forward-thinking businesses would have argued for less regulation. Now they recognize and value the fact that laws exist to assist provide certainty, in his opinion.
The head of FCA noted:
We clearly support ethical use of the underlying technology, making sure that this doesn’t come at the price of proper consumer protection or market integrity.
The Queen’s Speech, released in May, included the U.K. government’s legislative program for the upcoming parliamentary year. The safe use of cryptocurrency and resilient outsourcing to technology providers are two goals of one of the laws.
Additionally, the British government launched a comprehensive strategy in April to transform the nation into a major cryptocurrency hub and “a welcoming environment for crypto.” The strategy calls for creating a flexible framework for cryptocurrency regulation, regulating stablecoins, and collaborating with the Royal Mint to develop a non-fungible token (NFT) that will be released by the summer.