UK Crypto Regulation Plan Draws Criticism from Former FCA Head
Charles Randell, former chair of the Financial Conduct Authority (FCA), has criticized the UK government’s plans to regulate the crypto industry in a way similar to traditional financial investments.
His comment comes as the UK government is moving forward with its plans to regulate the cryptocurrency industry. In a consultation paper published on Monday, the government outlined its intention to introduce formal legislation for crypto activities by 2024.
The proposed regulations will bring various cryptoasset activities under the same rules that govern banks and other financial services firms. These regulations also include stricter rules for exchanges, custodians, and crypto lending companies, as well as measures to combat market abuse and enhance disclosure standards.
Charles Randell has issued a warning against treating cryptocurrencies as regular investments in UK markets under the same rules as traditional financial assets. Randell expressed concerns that such a move could lead to a surge in retail crypto speculation, potentially putting investors at risk.
During his tenure at the FCA, Randell faced pressure from ministers, and he anticipates that political interference will continue to hinder the implementation of new crypto regulations. He rates the FCA’s chances of enforcing these rules as “low,” suggesting that attempts to do so may be met with resistance from ministers.
Charles Randell said,
“If it does try to enforce the requirements that the minister has approved, it can, based on recent experience, expect a letter from the minister asking it not to do so.”
Randell emphasized that the crypto industry poses distinct risks compared to traditional investments, with fraud being prevalent. He argued that existing
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