FCA chairman urges 'no haste' on UK's crypto ambitions

This article comes from, Originally by Joshua Oliver, Originally by Joshua Oliver

Odaily Translator | Nian Yin Si Tang

Odaily Translator | Nian Yin Si Tang

The chairman of the UK's financial regulator, the FCA, has warned against rushing to bring the crypto market under its remit. Earlier, the British government launched an ambitious plan to develop new regulations to make the United Kingdom a cryptocurrency hub.In early April, UK Chancellor of the Exchequer Rishi SunakPlans in place to regulate stablecoins and issue NFTs

, as part of an effort to position the UK as a crypto-friendly tech hub.

In a press release, the Treasury Department said the moves would allow stablecoins to be considered a valid form of payment, adding that, with proper regulation, they could provide a more efficient method of payment and broaden the reach of consumers. s Choice. The British government plans to legislate to include stablecoins used as a means of payment into the scope of payment regulation, creating conditions for stablecoin issuers and service providers to operate and invest in the UK.

"We want to see the businesses of the future - and the jobs they create - located in the UK, where with effective regulation we can give them enough confidence to consider and make long-term investments," Sunak said.

Sunak also filed a request with the Royal Mint to issue NFTs.

In addition to these regulations, the Treasury will introduce a “Financial Market Infrastructure Sandbox” to enable businesses to experiment and innovate, notably by testing distributed ledger technologies. The government confirmed that it will launch a research program to explore the feasibility and potential benefits of using distributed ledger schemes for sovereign debt instruments, in addition to exploring ways to improve the competitiveness of the UK tax system to encourage further development of the crypto asset market.

In this regard, Charles Randell, chairman of the UK FCA, called for "realism" about this, including how long it will take the FCA to prepare for the regulation of issuers and traders of "purely speculative encrypted tokens", and the need for encrypted companies to How much can be improved to get official authorization.

He also emphasized the importance of the FCA's independence, which comes at a time when some in the crypto industry are urging the government to put pressure on the regulator to be more inclusive of digital assets.

"It's critical ... that there are strong safeguards in place to ensure that all interests -- not just those of those who make a profit by implementing crypto products, but those whose savings will be at risk," Randell said on Friday "This requires a strong and independent financial conduct regulator," he said in a speech.this is expectedwill leave next spring

The FCA chairman also said it was unclear how the regulator would honor the "high cost" of bringing cryptocurrency regulation into its remit.

Randell’s comments follow a speech in April by U.K. Treasury Economics Secretary John Glen, outlining the government’s ambition to make the U.K. “the best place in the world to start and grow crypto companies.”Glen said the government decided toAttract global cryptocurrency players

To set up an office in the UK, the plan will include new regulations that could mean giving the FCA more powers.However, the UK's attempt to compete with cryptocurrency hubs such as Switzerland and Dubai has been met with opposition from digital asset businesses.question

. Many U.K. crypto entrepreneurs believe the FCA is staunchly against digital assets, with crypto firms clashing with the regulator over how to implement anti-money laundering controls.

Randell said the FCA is open to innovation, including the potential for using distributed ledger technology and properly regulated stablecoins — technologies he believes could reduce “costs and friction” in the payments space and ultimately transform the industry.

However, Randell is skeptical about the goal of regulating more speculative cryptocurrencies. “Should people be encouraged to believe these are investments when there is no underlying value?” he expressed his doubts.

“What about when the price of Bitcoin can easily be halved in 6 months like recently, and some other speculative crypto tokens have even gone to zero?” he continued to add.

Randell said he opposed the inclusion of crypto firms in the Financial Services Compensation Scheme, which refers to the use of funds collected from regulated financial firms to compensate their clients. He noted that the financial services industry as a whole should not "suffer the cost of crypto companies failing."Randell previously talked aboutThere is a need to control cryptocurrency advertising

, and now he’s back on the topic of entertainment personalities endorsing cryptocurrencies.