According to the Financial Conduct Authority (FCA), the United States and the United Kingdom will strengthen their cooperation on cryptocurrency regulation. The British regulator stated that "in the past, forward-thinking businesses would have pleaded for less regulation. Now that they realize and value the fact that laws exist to assist provide clarity."
Nikhil Rathi, CEO of the U.K. Financial Conduct Authority, spoke about the FCA's regulatory objectives on Saturday at the Peterson Institute for International Economics.
The FCA chairman noted that “the potential hazards of cryptocurrency is an issue of worldwide interest. Our mandate at the moment is restricted to platform anti-money laundering regulations. These exacting guidelines have been followed, just as we would for any other company wishing to enter the UK market.”
The regulator also claimed that the United States and the United Kingdom will strengthen their cooperation in regards to stablecoins and the examination of central bank digital currencies, as well as the regulation of crypto-assets.
Rathi continued by noting the FCA's "Cryptosprints," which attracted close to 200 participants earlier this year. The FCA stated on its website that the purpose of the events was to gather opinions from the industry about the present market and the creation of a suitable regulatory framework.
According to the chief financial regulator, “participants informed us that a regulatory framework for crypto assets was something they considered to be of the utmost priority. They also want progressive regulation so that it can adapt to the changing nature of crypto assets and give businesses and investors time to get dressed.”
The FCA chief stated that we have a track record of supporting ethical applications of the underlying technology, as long as it doesn't compromise market integrity or adequate consumer protection.
Back in May, the U.K. government's legislative agenda for the following parliamentary year was delivered in The Queen's Speech. One of the legislation supports robust outsourcing to technology providers and secure cryptocurrency usage. Another attempts to establish the ability to more swiftly and easily seize and reclaim crypto assets, which are the main ransomware distribution method.
Furthermore , the U.K. government unveiled a comprehensive strategy in April to transform the nation into a major cryptocurrency hub and "a welcoming environment for crypto." The strategy calls for creating a flexible framework for cryptocurrency regulation, regulating stablecoins, and collaborating with the Royal Mint to develop a non-fungible token (NFT) that will be released by the summer.