As a seasoned researcher with extensive experience in financial regulation, I find myself aligned with Val Smith’s stance on the FCA’s approach to crypto firm registration. Having witnessed numerous instances of regulatory loopholes leading to financial chaos and illicit activities, I can attest to the importance of maintaining stringent standards to protect consumers and safeguard the integrity of the financial system.
The Financial Conduct Authority (FCA) stands by its rigorous procedure for registering cryptocurrency companies, even amidst criticism that this method could potentially stifle innovation in the field.
The U.K.’s Financial Conduct Authority is emphasizing its dedication to a thorough registration procedure for crypto-related businesses, aiming to allay fears that stringent regulations might stifle innovation within the sector.
On October 21st, Val Smith, who leads payments and digital assets at the Financial Conduct Authority (FCA), defended the organization’s position. He clarified that the FCA’s specialists do not reject applications without consideration.
Establishing and upholding trustworthy standards is crucial in every successful and competitive industry. Consequently, we apply stringent and universally applicable standards to any company that aims for registration, not only those dealing with cryptocurrency.
Val Smith
Smith spoke about worries related to the possibility of illegal actions, emphasizing the dangers posed by terrorism, criminal organizations, and modern-day slavery. She warned against lowering the bar, indicating that such an action might trigger a downward spiral in regulatory measures.
In terms of assessments, the representative from the FCA clarified that the regulatory body examines not only a company’s internal control systems but also its entire business operations and the individuals in charge of management.
We don’t solely consider the controls and systems when deciding to register a company; instead, we evaluate the business climate they are operating within, the individuals managing those processes, and their target customer base.
Val Smith
Smith’s argument for the Financial Conduct Authority’s (FCA) regulatory structure emerged a few months following the publication of its annual report. In this report, it was disclosed that out of 35 applications for cryptocurrency submitted during the year ending March, merely four companies were given approval. This figure suggests that more than 87% of crypto registration attempts either failed, were withdrawn, or declined, highlighting the difficulties faced by newcomers in the U.K.’s crypto market.
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2024-10-21 13:28