Keeping the Industry on its Toes

At the event, Steve Smart, Joint Executive Director of Enforcement and Market Oversight, said that the registration process is key to keeping the industry on its toes. He said that the FCA’s processes have historically been slower than they should be and that they’re working to clear operational backlogs and reduce unnecessary delays. He said that 86% of the initial cryptocurrency registrations submitted to the FCA were either rejected, withdrawn, or refused because they didn't meet anti-money laundering standards.

New Rules and the Importance of Data Sharing

Last year, the FCA introduced new rules requiring crypto companies to register with the financial regulator and have their marketing materials approved by an FCA-authorised firm. One of the key things these new regulations are doing is making exchanges have to tell customers about the risks of crypto investments. The FCA has warned that not following the rules could lead to criminal penalties, including unlimited fines and up to two years in prison for both UK-based and foreign exchanges. As a result, the top crypto exchanges Coinbase, Revolut, and Binance have updated their mobile and web apps to comply with the new regulations. Smart also highlighted the value of data sharing initiatives in preventing harm and encouraged companies and cross-industry partners to get involved. He also said that the FCA is all about using data to make decisions. They look at lots of data to find out if people are breaking the rules, if people are trading on inside information, and if there are any other issues in the market.