The chief executive of the UK Financial Conduct Authority, or FCA, said that the local government will work with its US counterparts to address a regulatory framework for cryptocurrencies.
In a speech to the Peterson Institute for International Economics on Thursday, FCA Chief Executive Officer Nikhil Rathi said the United States and the United Kingdom will “deepen ties” on crypto regulation following discussions between regulators. at the Financial Innovation Partnership on June 29. In addition, his government has coordinated with the United States and Singapore to launch an International Organization of Securities working group aimed at “decentralized finance and cryptocurrency market integrity risks.”
Rathi added that the FCA did not have the power to authorize the creation of a regulatory framework for cryptocurrencies in the UK, as many of its rules in the space were related to anti-money laundering, or AML. “We flagged Binance’s oversight and placed restrictions on Binance not being able to undertake any regulated activity in the UK without written consent,” they said:
“Many of the issues we face also require an international response. We greatly appreciate the law enforcement cooperation between the FCA and US agencies, including the SEC, CFTC and DOJ in particular, which has created an important set of precedents that demonstrate the ability to act effectively at the global level.
“In the past, innovative companies would have asked for less regulation,” Rathi said. “Now they understand and appreciate that the rules are there to help provide security.”
Our relationship with US regulators is essential in delivering consistent outcomes, deepening ties on #crypto-asset regulation and #market developments https://t.co/U7GHcq6kzp
— Financial Conduct Authority (@TheFCA) July 14, 2022
Many regulators and lawmakers around the world and in the European Union seem to be calling for international cooperation and coordination to address the risk and opportunities related to cryptocurrencies and the blockchain. The Financial Stability Board, a global financial regulator for many countries including the G20, said on Monday that it will propose international regulations for cryptocurrencies and stablecoins in October. In accordance with President Joe Biden’s executive order, the US Department of the Treasury has also introduced a framework on cryptocurrencies in which government agencies can work with their foreign counterparts.
As the UK’s financial regulator, the FCA oversees approximately 51,000 financial services companies and financial markets across the country, including the 35 registered crypto businesses it has approved to operate in the country since August 2020. Starting in January 2023, the CEO of the Hong Kong Securities and Futures Commission, Ashley Alder, will also become the next chairman of the FCA.
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