more accessible: At TheCityUK conference, Sarah Pritchard from the Financial Conduct Authority (FCA), who holds the Executive Director role for Markets and International, emphasized the importance of establishing rigorous requirements for crypto companies’ registration. This measure addresses concerns within the cryptocurrency community regarding the lengthy application process for obtaining licenses in the UK.
In the year 2020, a total of 300 companies sought registration, yet just 45 of them have been given approval. This meticulous verification process is designed to permit only businesses that uphold high standards of honesty and compliance to join the UK business community.
Pritchard stressed that supervisory bodies don’t only focus on the quantity of registrations but prioritize ensuring the safety of these firms for the market. The Financial Conduct Authority (FCA) is wary of a faster registration process as it could potentially weaken the screening process, resulting in inferior compliance standards. This could pave the way for questionable firms to persist in their operations. Such situations may give rise to financial crimes like money laundering, thereby eroding trust and market faith.
FCA Stands Firm on Crypto Registration Standards
The UK’s Financial Conduct Authority (FCA) approach to registering cryptocurrencies prioritizes consumer protection, but determining what exactly constitutes a cryptocurrency poses a significant hurdle. To ensure stability and security, the FCA applies stringent regulations that may deter potential entrants who could potentially disrupt the financial system.
According to Pritchard’s perspective, even minor concerns, aligned with Know Your Customer (KYC) regulations, could potentially threaten the financial markets with various inconsistencies. This underscores the importance of a thorough screening process as an essential initial step towards fostering trust in the financial sector over the long term.
Consumers can gain advantages from these measures as they minimize the likelihood of fraud and allow trustworthy, financially stable, and morally sound companies to provide cryptocurrency services.
In some strategies, a thorough investigation by the FCA can lead to a delayed registration process, as evidenced by industry feedback. Typically, it may take over a year from the time of application submission. However, consumers and the market may view this delay as necessary for maintaining market integrity and building consumer trust.
FCA, BoE Launch Digital Securities Sandbox Initiative
the Digital Securities Sandbox (DSS). This innovative platform allows financial market participants to test the use of blockchain technology for issuing and trading securities, thereby reducing the negative impacts of stringent regulations.
The DSS aims to foster new ideas while adhering to regulatory guidelines. The BoE’s sandbox, described in the proposal, is the designated area where financial companies can experiment with innovation, under controlled conditions.
JPEX Exchange Rugpull Suspects Nabbed In Hong Kong
Read More
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- BCH PREDICTION. BCH cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- Best Goomba Characters In Mario Games, Ranked
- SOL PREDICTION. SOL cryptocurrency
- USD RUB PREDICTION
- EUR MYR PREDICTION
- ZETA PREDICTION. ZETA cryptocurrency
- Destiny 2 Player Transforms Their Warlock Into Team Fortress 2’s Medic
2024-04-18 23:26