Navigating Challenges: FCA’s Regulatory Journey in the Crypto Sector
The U.K. Financial Conduct Authority (FCA) disclosed dealing with over 1,400 crypto cases from January 2020 to June 2023, outlined in a report by the National Audit Office.
The FCA, adapting to changes in the financial sector, faced delays in registering crypto firms due to a scarcity of crypto skills. The regulator initiated supervision of crypto firms in 2020 under money laundering regulations. The NAO report highlighted that the FCA registered only 29 firms out of 158 applications assessed from 2020 to 2021.
Enforcement action against illegal crypto ATM operators began in February 2023, emphasizing the FCA’s focus on maintaining specialist skills for efficient regulatory actions. The report also highlighted the FCA’s monitoring of financial promotions regulations, noting over 3,150 crypto scams reported in 2020, rising to 6,300 in 2021 and over 3,900 in H1 2022, leading to the publication of a public list of unauthorized firms.
Clever Robot News Desk 14th December 2023
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