The Financial Conduct Authority (FCA), the UK’s top financial regulator, is still seeking licenses to operate in the UK even though many crypto companies failed to meet regulatory requirements initially They have made it clear that they are still seeking licenses to operate in the UK.” The regulator said, “They know we have a good system of regulation and if they meet our standards, it is important for all the jurisdictions they intend to apply to around the world.
FCA on Crypto Regulation
Sheldon Mills, executive director of competition and consumer affairs at the Financial Conduct Authority (FCA), spoke about cryptocurrency regulation at the Citi&Financial Conference on Thursday.
British lawmakers and the crypto industry have criticized the country’s top financial regulator for taking a long time to process license applications and rejecting many applicants, despite the government previously saying it wants the UK to be a global hub for crypto assets.
Mills explained that crypto firms are not deterred by the strict licensing requirements and noted that many of them have reapplied for licenses to operate in the UK even after being initially rejected.” I am not surprised to see many crypto companies still trying to get licenses here in the UK even though some were denied their licenses on the first pass,” she said and elaborated.
They know we have a good system of regulation and if they meet our standards, that is important for any jurisdiction they try to apply to around the world.
“Mr. Mills further noted that 95 people have been hired on the FCA’s licensing team and that the number of pending applications has dropped by 40%.
The FCA has previously stated that 90% of crypto firms seeking licenses to operate in the UK have either withdrawn or had their applications rejected because they cannot meet the criteria.
Mills emphasized.
In time, we hope that faster and better decisions will support cost savings in the regulatory system.
Crypto regulation may be changing in the UK under new Prime Minister Liz Truss. Several key officials who previously worked on crypto policy in the country resigned from the government before she took office. These include former Finance Minister Rishi Sunak and Treasury Economic Secretary John Glen.
The UK government last week introduced the Economic Crime and Corporate Transparency Bill in the House of Commons. It “aims to strengthen the UK’s fight against economic crime,” the government detailed.In May, the UK government outlined plans to support crypto adoption and confirmed its commitment to regulate stablecoins.
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