FCA Chief Reveals Collaborative Plan by U.K. and U.S. to Regulate Crypto Industry

Chief executive of the Financial Conduct Authority (FCA), Nikhil Rathi, outlined his agency’s regulatory goals, making mention of cryptocurrency, last Wednesday at Peterson Institute for International Economics.

Rathi noted that “one area of global focus is crypto, both opportunities, and risks,” further explaining: “Currently, our remit is limited to anti-money laundering rules for platforms. We have applied those strict rules as we would to any other firm that wants to operate in the U.K. market.”

The FCA chief also noted:

“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.”

FCA Chief on the Previously Held ‘Cryptosprint’

The 42-year-old FCA chief executive mentioned that his agency organized “Cryptosprints” earlier in 2022, which attracted about 200 participants. According to the FCA’s official website, “The objective of the events was to seek industry views around the current market and the design of an appropriate regulatory regime.”

Narrating the outcome of the event, Rathi noted: “Participants told us they wanted a regulatory regime for crypto assets as a high priority … They also want regulation phased in over time, to allow firms and investors to prepare and for them to fit the evolving crypto assets.” He further narrated:

“In the past, innovative firms would have been pleading for less regulation. Now they understand and appreciate that rules are there to help provide certainty.”

Finally, the FCA chief described:

“We are demonstrably supporting responsible use cases for the underlying technology while ensuring it is not at the expense of appropriate consumer protection or market integrity.”