Officials from the UK's Financial Conduct Authority (FCA) appeared before the House of Commons Treasury Committee on March 8 to discuss the agency's work. Among the issues raised was the regulation of cryptocurrencies, which officials addressed with a distinct lack of enthusiasm.
Ashley Alder, president of the FCA, who assumed that position in February after serving as CEO of the Hong Kong Securities and Futures Commission, he told the committee that the FCA is "in the middle of a rather ambitious reset" as the Financial Services and Markets bill makes its way into the Parlament. He and CEO Nikhil Rathi fielded questions on predatory lending, mortgage rates, and a host of other topics before tackling cryptocurrency in the closing minutes of the hearing.
Former FCA Chairman Charles Randell sent a letter to the committee saying that โspeculative cryptography is pure and simple gambling and should be regulated and taxed as such.โ Alder responded that, globally, "this will not be seen from any regulatory perspective other than financial regulators." Financial regulation โmust be appropriately strict,โ Alder added.
If the โsame risk, same regulationโ principle applied to crypto companies, Alder said:
โThe interesting aspect of this is the degree to which cryptocurrencies would have to effectively adapt and detoxify to fit within that regime.โ
Asked if regulation โundeservedly legitimizesโ cryptocurrencies, Alder replied, โI agree,โ but said public policy issues like money laundering cannot be addressed without regulation.
Related: UK FCA Hints at Why Only 15% of Crypto Firms Receive Regulatory Go-ahead
The Financial Services and Markets Act, when passed, would give the FCA new regulatory powers over the cryptocurrency industry, but it would not eliminate the risks that cryptocurrencies pose. Rathi said: "We are not going to be able to put in place a framework that protects consumers from losses."
On Wednesday, we will be examining the work of @LaFCA. We will hear from CEO Nikhil Rathi and Chairman Ashley Alder.
More information about the session https://t.co/jcmn1lrQJv pic.twitter.com/AA1Fv7prE9
โ Treasury Committee (@CommonsTreasury) March 3, 2023
Most British cryptocurrency holders do not hold more than โseveral hundred poundsโ worth of cryptocurrency, he added.
The Markets and Financial Services Law was introduced in parliament in July and modified in October to expand crypto regulatory provisions.
Post navigation
