UK’s FCA Defends Strict Crypto Stance to Combat Illicit Activities
Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, Business2Community, and...
In response to growing criticism over its strict registration requirements for crypto firms, the UK’s Financial Conduct Authority (FCA) defended its stance on Monday, October 21, stating that these measures are necessary to protect the integrity of the financial system.
Addressing concerns about the high rejection rate for crypto firm applications, Val Smith, head of payments and digital assets at the FCA, emphasized that “setting and maintaining standards people can trust is a key part of any thriving, competitive sector,” adding that the FCA is not arbitrarily rejecting applications.
FCA doubles down on hawkish #crypto stance to fight money laundering
The FCA is defending its stringent crypto firm registration process despite concerns that the approach may hinder innovation pic.twitter.com/ic9D1yqaC4
Smith highlighted the severe risks inherent in the crypto industry, including terrorism, organized crime, and human trafficking.
She firmly rejected calls to lower registration standards, warning that relaxing these requirements could undermine market safety and result in a “race to the bottom.”
The FCA works closely with government bodies, industry leaders, and international regulators to create a solid foundation for the UK’s crypto sector.
According to Smith, the regulator evaluates a firm’s internal controls, operations, and the people managing it before deciding whether to grant registration.
Crypto firms, she noted, are held to the same high standards as traditional financial institutions.
“Our decision on whether to register isn’t
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