The UK Financial Conduct Authority (FCA) has moved to waive strict TradeFi regulations for crypto companies. The FCA confirmed the development in a press release published on Wednesday.Â
The UK outlined minimum expectations for crypto companies seeking to operate in the UK once the sector is officially regulated. The regulator added that these guidelines aim to balance innovation and competitiveness while safeguarding consumers and maintaining market integrity.
David Geale, the Executive Director of Payment and Digital Finance at the UK FCA, has commented on the recent developments. He outlined the commission’s plan to foster a sustainable and competitive crypto industry, aiming to strike a balance between innovation, market integrity, and trust. Geale also mentioned that while the proposal won’t completely wipe out the risks tied to investing in cryptocurrencies, it will enable companies to adhere to common standards, helping consumers better understand what to expect.
The FCA also revealed that many of these requirements are similar to obligations that apply to traditional financial institutions. This, as revealed, includes rules on operational resilience and controls against financial crime. The post addressed areas connected to cryptocurrency, explored how complaints related to crypto should be managed, and examined whether consumers can refer these issues to the Financial Ombudsman Service. It’s worth noting that the Financial Ombudsman Service is the official dispute resolution body between consumers and financial companies in the United Kingdom.
UK regulator calls for feedback on proposal
The regulator also called for feedback on whether the UK’s consumer duty, requiring financial firms to provide positive outcomes for consumers, ought to extend its applicability to crypto companies and related crypto asset activities.
Meanwhile, this proposal follows shortly after His Majesty’s Treasury, the UK’s finance and economic department, released its first draft legislation in April. As disclosed, the draft outlined plans to bring exchanges, dealers, and agents in line with current regulations. The government stated that the plan demonstrates the UK’s openness to business while cracking down on fraud and abuse.
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