The UK plans a ‘comprehensive response’ to the growing misuse of crypto by retailers and customers, says Christopher Woolard of the UK’s Financial Conduct Authority (FCA).
He continues that although he does not seem crypto as a systemic threat to the country it is nevertheless important to clap down and tighten up measures in place.
The FCA replaced the struggling Financial Services Authority which came in for heavy criticism after the financial crash. It is independent of government and levies fees on financial institutions to fund itself. It was launched in 2013.
The comments were given at the recent Regulation of Cryptocurrencies event, in London, where Woolard explained how developments in regulation were coming along. There has been considerable jumps in crypto volumes and usage in recent years and, working alongside the Bank of England, the FCA is now working to ensure crypto threats are recognised and the stability of the financial system will not be undermined by them.
The Treasury is also involved, putting major resources into ramping up protections and rules, going someway beyond what is required by the EU Anti-Money Laundering Directive.
Woolard was keen to stress that the state institutions are not anit-crypto, but rather that it is new and untested, and much firmer measures and systems need to be in place to ensure the broader stability of the system is not at risk.