Which side is UK FCA in the crypto debate?

Highlights

• CryptoSprint event explored the issues of how to disclose information related to crypto-assets, custody obligations, regulatory obligations etc.
• The event had more than 600 applications and 96 attendees.
• Though still in the early stage, several participants felt the FCA was far more welcoming this time around and did listen to what the stakeholders had to say and vice-versa.

The UK Financial Conduct Authority (FCA), over the years, has not been very keen on welcoming cryptocurrencies. Many within the FCA believe that cryptos pose risks to the financial system, investors, etc.

However, of late, the regulator has shown signs of perhaps opening up the crypto debate for the stakeholders to come and engage in a series of talks to get a better grip on the matter. In fact, earlier this year in April, David Raw, FCA co-director of consumer and retail policy, had stated that FCA is focused more on the negative aspects of cryptos rather than looking at the opportunities it would bring to the community.

Related read: Why is UK FCA looking to hire digital asset talent?

But now, during the two-day CryptoSprint, which brought together the regulator and stakeholders, discussed an array of topics, and the discussions looked productive.

What’re stakeholders saying?

The CryptoSprint, held between 10-11 May, is said to have yielded rich fruits, with FCA keeping an open mind to what the stakeholders have to say. The event is said to have explored the issues of disclosing information related to crypto-assets, custody obligations, regulatory obligations, etc.

Though still in the early stage, several participants felt the FCA was far warmer this time around and listened to what the stakeholders had to say and vice-versa. The event had more than 600 applications, and 96 attendees attended it.

Related Read: What does EU’s crypto vote mean for digital currencies?

Ask Ian Taylor, a member of Crypto UK, a local trade organization, and he would tell you that this was by far the most positive interaction they have had in the past. He felt that FCA showed positive intent towards learning. He said it was a great help in fostering innovation towards the drive for Crypto regulation and working in the direction of forming a fit for purpose regulatory framework that will encourage UK businesses.

Will it bear fruit? 

Well, it’s a start, but it will need an extended period of discussions and engagement if both of them have to come on a common platform. The FCA has expressed its desire to work more on an information-gathering exercise to help them with regulatory policy creation.

Besides, this will also keep the stakeholders in the loop, which would keep them abreast of the latest developments and be a part of the process.

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