{"id":25,"date":"2023-03-09T05:38:39","date_gmt":"2023-03-09T05:38:39","guid":{"rendered":"http:\/\/monsoonblockchain.net\/?p=25"},"modified":"2023-03-09T05:38:39","modified_gmt":"2023-03-09T05:38:39","slug":"fca-officials-tell-uk-parliamentary-committee-crypto-regulation-is-unavoidable","status":"publish","type":"post","link":"https:\/\/monsoonblockchain.net\/?p=25","title":{"rendered":"FCA officials tell UK parliamentary committee crypto regulation is unavoidable"},"content":{"rendered":"

FCA officials tell UK parliamentary committee crypto regulation is unavoidable<\/a><\/p>\n

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Officials of the United Kingdom\u2019s Financial Conduct Authority (FCA) appeared before the House of Commons\u2019 Treasury Committee on March 8 to discuss the agency\u2019s work. Among the issues raised was cryptocurrency regulation, which the officials approached with a clear lack of enthusiasm.<\/p>\n

FCA chair Ashley Alder, who took that position in February<\/a> after serving as CEO of Hong Kong\u2019s Securities and Futures Commission, told the committee that the FCA is \u201cmidway through a quite ambitious reset\u201d as the Financial Services and Markets bill makes its way through the Parliament. He and CEO Nikhil Rathi answered questions on predatory lending, mortgage rates and a number of other topics before addressing crypto in the final minutes of the hearing. <\/p>\n

Former FCA chair Charles Randell sent a letter to the committee saying \u201cspeculative crypto is gambling pure and simple and it should be regulated and taxed as such.\u201d Alder responded that globally \u201cthis is not going to be looked at from a regulatory perspective other than by financial regulators.\u201d Financial regulation \u201cneeds to be appropriately tough,\u201d Alder added.<\/p>\n

If the principle of \u201csame risk, same regulation\u201d were applied to crypto businesses, Alder said:<\/p>\n

\u201cThe interesting aspect to this is the degree to which crypto would need to adapt and effectively detoxify in order to fit within that regime.\u201d<\/p><\/blockquote>\n

When asked if regulation \u201cundeservedly legitimizes\u201d crypto, Alder responded, \u201cI agree,\u201d but said public policy issues such as money laundering cannot be tackled without regulation. <\/p>\n

Related: UK\u2019s FCA hints at why it\u2019s only given 15% of crypto firms the regulatory nod<\/a><\/em><\/strong><\/p>\n

The Financial Services and Markets Act, when passed, would give the FCA new regulatory powers over the crypto currency industry, but not eliminate the risks posed by cryptocurrency. Rathi said, \u201cWe are not going to be able to put in place a framework that protects consumers from losses.\u201d<\/p>\n

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On Wednesday, we\u2019ll be scrutinising the work of @TheFCA<\/a>. We\u2019ll hear from Chief Executive Nikhil Rathi and Chair Ashley Alder.<\/p>\n

Find out more about the session https:\/\/t.co\/jcmn1lrQJv<\/a> pic.twitter.com\/AA1Fv7prE9<\/a><\/p>\n

\u2014 Treasury Committee (@CommonsTreasury) March 3, 2023<\/a><\/p><\/blockquote>\n

Most British crypto holders own no more than \u201cseveral hundred pounds\u2019\u201d worth of cryptocurrency, he added.<\/p>\n

The Financial Services and Markets Act was introduced into Parliament<\/a> in July and amended in October to expand crypto regulatory provisions<\/a>.<\/p>\n