AI Trading

While speaking at its yearly review, the CEO of the UK’s financial conduct authority (FCA), Nikhil Rathi, said that people that invest in crypto must be ready to “lose all their investments.” UK’s financial watchdog capitalized on the online public event on Wednesday to stand by the message it has been repeating for many years. However, it also repeated its regulatory steps to protect investors.

The FCA told the media and the public that current crypto regulations are only limited to preventing anti-money laundering activities. Despite being tasked with one responsibility, many crypto firms have shut down their UK operations because they were unwilling to abide by these anti-money laundering regulations.

An FCA representative stated that only 56 blockchain technology firms are registered with the financial watchdog. However, he noted that 246 unregistered crypto firms are still operating in the UK.

Three entry points to crypto regulation

The FCA’s executive director for markets, Sarah Pritchard, opined that there are three entry points for crypto regulation. First, people need to understand the meaning of crypto as a high-risk investment. Pritchard explained that investors could lose all their money and can’t seek justice from the government or the judiciary.

AI Trading

The financial supervisor said this lack of understanding is why she is launching a “scam-smart” campaign for greater awareness and to warn potential crypto customers. She added that the latest online safety bill includes measures to tackle advertising scams.

Former interim chair of the FCA, Richard Lloyd, said there is a complex and under-resourced system for tackling fraud in the UK. Hence, the country is losing 130 billion pounds yearly. Pritchard noted that the second entry point is to solve the crypto payment method problem.

She said the FCA is working with the Bank of England and the Treasury to issue a regulation for using stablecoins as a payment method. Nonetheless, the FCA recognizes that blockchain technology has immense potential and benefits in market innovation.

Two FCA programs reflect that line of thought. There is the Innovation Pathway which assists financial firms in launching innovative products. Also, there is the Regulatory Sandbox which allows consumers to test the first innovative proposals.

Ascannio /

AI Trading produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.

Mark Ackman

By Mark Ackman

Mark Ackman is an experienced news writer and analyst with a knack for uncovering the heart of a story. His articles are insightful, informative, and well-researched, providing readers with a nuanced understanding of complex issues.