In a new development, the UK’s Financial Conduct Authority (FCA) plans to create a robust regulatory framework for cryptocurrencies. The financial regulator is seeking input from crypto companies to develop the necessary rules.
FCA Executive Director Sarah Pritchard a statement The agency plans on cryptographic regulations on April 25 during its City Week conference in London. In her remarks, Director Pritchard noted the importance of collaborating with crypto companies in developing regulatory standards.
She noted that inputs from the digital asset industry will ensure the correct regulatory regime for cryptocurrencies in the future.
Regulators and crypto companies to work together
Speaking at the conference, CEO Pritchard stated that working with industry would lead to more productive bases. The outcome will benefit digital asset users, markets and related businesses even as crypto evolves into the mainstream.
Early participation and support for regulations will also help digital companies during implementation. The director likens Digital Origins to a one-off representation of an alternative rebellion. However, digital assets have gained more popularity over the years.
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In addition, Director Pritchard I confess Limited operating powers of the Financial Conduct Authority (FCA). Currently, the Financial Conduct Authority (FCA) ensures that digital asset entities in the UK comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) rules.
In her words, the financial regulator will cover more regulatory ground in digital assets depending on the authority delegated from government legislation and she also cited the FCA’s support for the cryptocurrency industry.
It is worth noting that the regulator has registered about 41 digital companies of various sizes. As many as three-quarters of another 195 foreign companies have had their application for a UK license rejected or withdrawn.
Moreover, the manager claimed that FCA issued a warning to digital investors a week before the FTX stock market crash in November 2022.
Contrasting encryption regulations in the United States
While the UK regulator is open and welcomes the input of digital asset firms in developing its regulatory framework, US regulators are taking a different approach.
Digital regulation in the United States is becoming tougher and tougher through aggressive enforcement actions by regulators such as the Securities and Exchange Commission (SEC).
a A report from Forbes On April 3 he cited David Sacco’s comment about US regulators and their approach. Sacco stated that US regulators are busy regulating digital platforms rather than digital assets.
Also, on the YouTube channel, “All-In podcast” on April 22, a crypto investor, Sharmath Palihapitiyastated that cryptocurrency is dead in America.
The comment was in response to the report that digital asset exchange Coinbase is considering relocating from the United States. The investor emphasized that the US regulators’ activities against digital assets are gradually strangling the industry to death.
Palihapitiya reports that SEC Chairman Gensler blames digital assets for the recent banking crisis in the United States. For him, all US authorities point an accusing finger at the digital industry.
Featured image from Pixabay and chart from Tradingview
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