According to a key spokesperson from the United Kingdom (UK) Financial Conduct Authority (FCA), it was made known that the government’s watchdog is already making plans to curb fraudulent activities in the country’s crypto market.
The FCA is Late to the Party
There has been news of several countries, including developing ones already putting together a comprehensive regulation which has helped protect its residents from getting fleeced by license crypto operators. So far, the UK financial watchdogs have been slow in their actions.
Christopher Woolard, the executive director of strategy and competition at the FCA, made it known in a recent post, that the FCA does not view Cryptocurrencies has a threat to the countries financial stability, however, the watchdog is ready to ensure that illicit crypto activities do not thrive within the UK.
Woolard also made it known at the Regulation of Cryptocurrencies event in London, “that the regulator is planning to take significant action to crack down on the illicit use of cryptocurrencies.”
These actions by the regulator are in response to the dramatic increase of crypto adoption in recent years. This way the FCA will be able to have an adequate oversight of the UK’s crypto industry before it gets too big.
FCA and HMT
Woolard further made it known that the regulator has sought to facilitate collaboration between itself and Her Majesty’s Treasury (HMT) and the Bank of England, regarding this. According to him, the collaboration between the two parties will help to examine the impact of cryptocurrencies and distributed ledger technology with regard to “consumers market integrity, and the risk of financial crime.”
Woolard also stated that:
“The FCA, HM Treasury and the Bank of England are each taking a number of steps over the coming months to address these harms and to encourage future beneficial innovation.”