UK’s top regulator admits being powerless to oversee crypto

2021-9-7 14:02

The Financial Conduct Authority has limited authority over cryptocurrencies and other similar digital assets, according to its Chair

Speaking at the Cambridge International Symposium on Economic Crime yesterday, the Financial Conduct Authority (FCA) chairman Charles Randell discoursed at great lengths on regulatory efforts. Randell implied that the regulatory body does not have adequate power to execute the appropriate regulatory action.

He compared the FCA to the US Securities and Exchange Commission (SEC), which maintains that almost all digital tokens are securities save for the top two cryptocurrencies, Bitcoin and Ether. While the SEC hasn't needed a mandate from Congress to manage these assets in the past, the FCA requires permission from the UK Parliament.

Randell noted, "The FCA currently has a limited role in registering UK-based crypto-asset exchanges for anti-money laundering purposes."

He also referenced Hercules' Augean stables, observing that the internet had seen a build-up of problematic content that needed cleaning up. The FCA, in his opinion, needed to pursue appropriate regulations and push for consumer awareness to fight the scourge of online financial scams.

As far as crypto scams are concerned, Randell cited what he thought might have been the farthest-reaching financial advert in history – Kim Kardashian's recent Instagram post. The American socialite was reportedly paid to advertise Ethereum Max to her huge Instagram following. Randell observed that unknown developers created the token just a month earlier, while not categorically classifying the token as a scam.

He averred that such influencers generated hype that pushed the younger public into investing without much understanding of the risks involved. He added that advertisements and promotions should not give the impression that a token is regulated, highlighting how misleading these adverts could be. He asked for caution, given that crypto scammers often use celebrities for promotion, eventually leading to pump and dump moves that leave consumers high and dry.

The UK Treasury is said to be working on a proposal that grants the FCA jurisdiction to regulate the promotion of assets as in traditional financial markets. Randell went on to clarify that from the FCA's point of view, any tokens that could be authorised to operate would have to satisfy certain minimum requirements.

His comments come not long after the FCA revealed it is “not capable” of supervising Binance. This is despite having reported that the exchange isn't compliant with all regulations.

Even with its limited ability to authorise crypto firms to operate in the UK, the FCA chair recognised the positive use cases that crypto presents. He lauded the improved underlying technology, which he felt would positively impact the efficiency around payment systems.

The post UK’s top regulator admits being powerless to oversee crypto appeared first on Coin Journal.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Emerald Crypto (EMD) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 4.67 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0095806 (-100%)

oversee crypto authority powerless regulator admits being

oversee crypto → Результатов: 69


India Reverses Crypto Stance, Considers Classifying Bitcoin As An Asset Class: Report

After years of India's hostile stance towards cryptocurrencies, the country is reportedly looking to classify Bitcoin as an asset class. India's Financial Regulator SEBI To Oversee Crypto Sector According to reports by The New Indian Press, the government has decided to skip its plans to ban cryptocurrencies and consider Bitcoin's classification as an asset class.

2021-6-11 20:30


Turkish regulatory group to propose new crypto rules and regulation

Turkey’s financial regulator is ramping up efforts to develop a new framework that allows the federal government to oversee the use of cryptocurrencies throughout the nation. Turkey prepares to regulate cryptos The Capital Markets Board (CMB), Turkey’s financial regulatory and supervisory agency, is planning to develop guidelines to foster the adoption of blockchain technology.

2020-1-6 18:47


Фото:

Facebook’s Crypto Project Gets Major Backing from Dozens of Industry Heavyweights

Cryptocurrency media outlet The Block on June 14, 2019, revealed the complete list of stakeholders of Facebook’s high-profile digital currency project. Heavyweights Behind the Libra Project According to the report, a number of corporate titans from various industries are part of the governing association of Facebook’s cryptocurrency.

2019-6-15 13:00


Singapore Delays Decision On Electronic Wallets And Crypto Tokens Regulatory Oversight

A proposal, the Payment Services Bill, was introduced to the parliament of Singapore in an effort use the country’s central bank to oversee the providers of payment services for cryptocurrency. It would specifically apply to providers that do not fall under the jurisdiction of the Money-Changing and Remittance Businesses Act or the Payment Systems Oversight […]

2018-11-28 11:56