Britain's Financial Conduct Authority (FCA) has no intention of compromising its focus on trust just to make it faster to register crypto companies, a senior official at the country's regulator said on Thursday.
Responding to industry complaints that the regulator is taking too long to register crypto companies, Sarah Pritchard, the FCA’s executive director for markets and international, said at TheCityUK conference that “just focusing on numbers is not enough to ensure trust and reputation. may be damaged.”
The FCA, the country's main cryptocurrency regulator, has been processing the registration of cryptocurrency companies wishing to operate in the country and comply with money laundering rules since 2020. More than 300 companies have attempted to gain regulatory approval since the scheme was launched. Only 45 of them were successful.
Companies on the list include cryptocurrency exchange Gemini, payment platform Revolut, and asset management company Fidelity Digital Assets. However, this process may take some time.
Crypto industry participants told CoinDesk last year that it took more than a year to hear back from the FCA regarding their registration applications. Pritchard said in remarks Thursday that while speeding up the process may look good at first glance, it could ultimately harm consumers.
“Lowering standards could leave our markets open to abuse by those seeking to launder criminally generated cash, undermining market integrity and confidence in financial markets,” Pritchard said. There is a possibility that it will happen.” “Instead, we are taking a longer view. The success of cryptocurrencies, and the success of every foundation of crypto companies, depends on trust being built and maintained.”
