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The executive director of the UK Financial Conduct Authority (FCA) said that the regulator will take into account recent developments in the crypto market when developing new industry rules.
Sarah Pritchard (Sarah Pritchard) in an interview with Bloomberg admitted that before starting to develop a regulatory framework for digital currencies, it is necessary to study the situation with Terra.
If innovation works well and safely, it remains, says a representative of the FCA leadership. However, the events of the past week have laid bare the problems with which regulators will have to work. The official also recalled last year’s Opinium survey, which claims that about 69% of adults under the age of 40 who invested in cryptocurrencies mistakenly believed that these assets are regulated by the FCA:
“The situation reminds us of the really important problems that exist right now, concerning both the functioning of the market and the protection of consumer rights. It is important that people understand how the digital asset market works, and what they risk by investing their money.”
Until now, the FCA has limited itself to ensuring that crypto companies comply with anti-money laundering regulations. Many companies have even started to leave the UK because of the tightened rules. Then the regulator said that these companies are too young and do not understand how to work with supervisory authorities.
At the end of 2022, the FCA will have to receive new powers to regulate cryptocurrencies from the UK Treasury Department. Also at the end of the year, they are going to announce the upcoming bills related to the financial services sector and markets.
Earlier it became known that the Ministry of Finance of Great Britain is developing a plan for legislative initiatives, which should make the country “a leader in technology and innovation.”
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