FCA Wants To Regulate Cryptocurrency Token Issuers

FCA wants to regulate token issuers

The United Kingdom Financial Conducts Authority (FCA) said it needs to bring cryptocurrency token issuers within its reach. This is according to the FCA chair Charles Randell, who mentioned this in a speech earlier today.

Randell stated that cryptocurrency regulation is becoming a norm all over the world, and the United Kingdom should be left behind in this aspect. He said, “The tide of regulation is turning all over the world, and online platforms should expect a future where regulation addresses the significant risks they pose in the same way as other businesses.  Same risk, same regulation.”

He admitted that regulating the cryptocurrency space is a tough task since the internet is a challenging area for regulators. Randell said the FCA needs to use two methods to tackle the problem of online financial scams, and they are appropriate regulation, including self-regulation by online platforms and robust enforcement by the authorities, and greater consumer awareness about online scams.

Some regulators are still skeptical about Bitcoin, and the broader crypto market and Randell showed that he is yet to trust the cryptocurrency space. “These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle.  We simply don’t know when or how this story will end, but - as with any new speculation - it may not end well,” he added.

Randell stated that the cryptocurrency issuers need to be brought within reach of the FCA to ensure that it properly regulates the activities of the market. Finally, Randell said, “It’s absolutely imperative that any regulation of cryptoasset promotions requires the risks to be clearly highlighted and does not give the impression that the token itself is subject to regulatory supervision or has regulatory approval.”

Regulators in various parts of the world have started to focus their attention on cryptocurrencies. The US SEC is working hard to gain the required authority and resources to increase its oversight of the crypto market.