Following the FTX collapse, several nations' regulatory agencies have proposed changes to their existing crypto regulations.
The new chair of the UK's FCZ makes accusatory comments regarding cryptocurrencies ahead of his tenure in 2023.
Regulators believe that strict crypto regulation is the only way to prevent such occurrences in the future.
Filings of several exchanges, sparked concerns about existing crypto regulations. Users lost millions of dollars, prompting regulators to act voluntarily.
As a result, countries like France, Hong Kong, Canada, and so on are proposing amendments to their existing crypto regulations. In line with this, a recent Financial Times report reveals that Ashley Alder, the future head of the UK’s Financial Conduct Authority, made some serious remarks about upcoming crypto regulations amendments.
As per reports, Ashley noted that crypto firms intending to build businesses in the UK will face an uphill battle when the agency acquires additional powers to regulate the crypto sector.
Ashley is one of the most prominent personalities in the financial world. He is currently serving as the CEO of Securities and Futures Commission in Hong Kong, a position he has held since 2011. He also chairs the board of the International Organization of Securities Commissions and serves on the plenary and steering committees of the Financial Stability Board.
Speaking at a cross-party Treasury Select Committee, Alder stated that, in his experience, crypto platforms were purposely deceptive, facilitated large-scale money laundering, and created tremendously unfavorable risk.
He went on to say that the way companies in the industry bundle a wide range of traditionally segregated activities creates significant risks, such as potential conflicts of interest and assets that are not adequately sorted out.
Furthermore, the new head admitted that the FCA suffered from a view that it had failed to ensure enough protection for consumers and longstanding challenges concerning operational efficiency. Alder stated that he intends to relocate to the United Kingdom in January. Notably, he will take over as Chair of the FCA the following month.
The words of the future FCA head appear to contradict with regulatory body's attempts to develop the crypto industry in the United Kingdom.
Meanwhile, the United Kingdom Treasury is currently working on fresh regulatory measures for the crypto industry. The measures may limit the number of foreign companies that can trade in the country. As part of the planned regulatory amendments, the FCA will be entrusted with monitoring operations and advertising of crypto businesses.
There is no guarantee that future crypto regulation will prevent such occurrences in the future. However, appropriate measures such as monitoring crypto exchange operations and safeguarding users' funds may change the circumstance in the future.
Till then, stay tuned to CoinGabbar for further updates on the FCA's stance on crypto regulatory measures.
Read also: Crypto-Friendly Regulations will Soon Be Tightened in France