Key points:
- The FCA Will Cooperate With US On Regulation of Crypto
- Who Are The FCA?
- Yet Another Regulatory Step (After Similar Recently)
The Financial Conduct Authority (FCA) in the UK have announced they are deepening their collaboration with respect to the regulation of the cryptocurrency world. The FCA is the primary financial markets regulatory body in the UK, and this step comes in the wake of numerous developments recently, as global, centralised institutions have looked to regulate the Decentralised Finance (DeFi) space.
The Financial Conduct Authority (FCA) To Cooperate With US On Regulation of Crypto
The FCA said that the US and UK will expand their crypto regulatory ties. In a speech at the Peterson Institute for International Economics, FCA chief executive Nikhil Rath said, “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,” adding “In the past, innovative companies would have argued for less regulation. Now they understand and appreciate that the rules are there to help provide certainty.”
Also Read: When Is The Best Time To Buy Crypto?
Who Are The FCA?
The FCA is the main regulatory body in the UK for the financial services industry. Their role is to keep the industry stable and also includes protecting consumers as well as promoting healthy competition between financial service providers. They regulate over 50,000 firms in the financial services area, having been established in 2013, assuming responsibility for conduct and regulation from the Financial Services Authority (FSA). UK financial services companies must be registered or authorised by the FCA, which means that the companies must meet a range of requirements.
Yet Another Regulatory Step (After Similar Recently)
As we highlighted in our post recently, Further Institutional Involvement in the Decentralized Finance World, this crypto regulation development comes on the back of numerous other moves by global, centralised financial markets bodies to be more involved with and to regulate the DeFi world.
As we highlighted, the Treasury Department of the US broadcast an invitation for comments on the Executive Order on digital assets from President Joe Biden in March this year. This came in tandem with a speech from John Cunliffe, the Bank of England Deputy Governor, urging for the regulation of cryptocurrencies.
In addition, the G20 watchdog, the Financial Stability Board, is looking to recommend international crypto and stablecoin regulations in October, whilst the US Treasury has also recently outlined a framework for regulating international cryptocurrency transactions.
Decentralised Finance seems to be becoming a lot more centralised with the chills from the crypto winter.
