Head of UK's main financial authority suggests balance in regulating crypto

11 Sep, 2018
by David Robb
News
Head of UK's main financial authority suggests balance in regulating crypto

The head of the UK's main financial regulator has suggested a balanced approach to dealing with cryptocurrencies, limiting the risks without suppressing the benefits. Financial Conduct Authority (FCA) chief Andrew Bailey made the comments at the regulator's annual public meeting.

The UK has been accused of lagging behind many other major countries with cryptocurrency and blockchain regulations, with criticisms coming from evangelists and opponents alike. The FCA chief's statement hopefully shows a recognition of this issue and an effort to move forward in one way or another.

According to Bailey, the "FCA is firmly a supporter of innovation, but we must balance this against the threats that come from some forms of innovation and the new issues they can pose. A good example of this is cryptoassets. We are keen to see the potential of their underlying technology, and do not rule out roles for cryptoassets themselves. But the risks are evident". 

He claimed that the regulator is now "working closely with the Treasury and Bank of England to assess these issues and come up with appropriate responses." 

The FCA previously issued a warning to major financial institutions regarding cryptos, but hasn't taken any more direct steps in either direction. The UK government did already establish a new 'cryptoassets task force', launched back in March as part of HM Treasury's Fintech Sector Strategy.

Read more: UK financial watchdog warns banks of crypto risksBank of England slapped for lagging behind in crypto regulationsUK Financial Conduct Authority issues warning over 2 "unauthorized" exchanges

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