The leading financial regulator of the United Kingdom has drafted new proposals for how existing financial policies should be applied to the cryptocurrency, which marked the next step in creating a regulatory framework for the sector.
The Financial Conduct Authority (FCA) Na -Published A role of consultation on Wednesday, which sets the minimum criteria that crypto companies must meet once the industry is formally brought under its remit. The regulator said the rules were designed to balance the change and competitiveness of protection for consumers and market integrity.
“We want to develop a sustainable and competitive crypto sector, balancing change, market integrity and trust,” said David Geale, executive director of payment and digital finance.
Geale said that while the proposals do not erase crypto investment risks, they will help companies meet common criteria so that consumers have a better understanding of what to expect.
FCA is looking for consultation to deliver specialized crypto policies
The FCA says many of the requirements are similar to the obligations that apply to traditional financial institutions. This includes resilience operating policies and financial crime controls. The regulator also opened discussions on issues that are unique to crypto markets.
The FCA is looking for comments on whether the UK consumer duty, which requires financial companies to deliver great outcomes for consumers, should also apply to crypto companies and crypto -owned activities.
The regulator is also looking for views on how crypto-related complaints should be managed, including if consumers can refer them to the financial servicesman service, the UK’s official body for repairing misunderstandings between financial companies and consumers.
The proposals came after the Treasury of His Majesty – the finance and economic Ministry of the UK – published its draft law in April.
The draft policies for crypto Outlined plans to bring exchanges, sellers and agents to be consistent with existing regulations.
The government said the plan indicated the UK was “open for business” but closed to fraud and abuse.
Related: UK Petition for Blockchain Innovation Gains Traction after Coinbase Push
UK to strengthen the relationship with us with things in crypto
The consultation complies with moves from the UK and the United States preparing to deepen cooperation with digital possessions.
On Wednesday, The Financial Times reported that UK Chancellor Rachel Reeves and Treasury Secretary of Treasury Scott Bestent discussed how the two countries could do Boost Coordination in Crypto.
Noted by unidentified resources, the outlet reported that the discussion was involved in companies including Coinbase, Circle and Ripple, and executives from traditional financial companies such as Bank of America, Barclays and Citi.
Cointelegraph reached the FCA for more information, but did not receive a response by publishing.
