GB Market Commentary 26/04/2023
by Marcus Sotiriou
At the City Week conference yesterday, FCA Executive Director Sarah Pritchard said that the FCA want to work with UK crypto platforms to develop regulation.
After discussing on Monday how the UK need to act fast to keep up with Europe, as the EU have now passed the MiCA bill which provides some clarity for crypto businesses, Pritchard gave some promising words about UK crypto regulation.
In February, the UK Treasury began a consultation that seeks feedback from key stakeholders on how to set rules and regulations for the crypto sector and UK crypto platforms. This consultation states that the the FCA could host a new authorisation regime for crypto companies which includes overseas companies, as well as a promotions regime for digital assets. As the FCA has so far only registered around 40 crypto businesses in the UK, this would be a significant step forward.
Pritchard said yesterday, "Let’s work together to shape our rules and regulations to benefit markets, consumers and firms as crypto goes from niche to mainstream. Let us do it with our minds open to the potential gains and our eyes open to the risks.
Could this just be a publicity stunt to provide comfort to UK crypto platforms? Possibly, but according to compliance executives in the industry, such as Michael Johnson, the FCA is listening and engaging with key stakeholders to lay out a constructive regulatory framework.
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