In the ongoing challenging market situation, the UK Financial Conduct Authority (FCA) responded to those who were continuously asking why the FCA is delaying approving registration. However, today, on April 18, 2024, during TheCityUK conference on Thursday, Sarah Pritchard, executive director for markets and international affairs at the UK’s FCA, reaffirmed the regulator’s commitment to maintaining trust in the financial sector.
Why the UK is time for crypto registration?
Sarah Pritchard, the FCA’s executive director for markets and international, spoke at TheCityUK conference, stating, “A simple focus on numbers could undermine trust and reputation.” Her remarks were in response to complaints from the industry about the lengthy registration process for crypto companies.
Since 2020, the FCA, serving as the primary crypto regulator in the country, has been handling registrations for crypto firms seeking to operate in compliance with anti-money laundering regulations. Despite over 300 attempts by firms to secure approval, only 45 have succeeded thus far.
Among those successfully registered are prominent names like crypto exchange Gemini, payments platform Revolut, and asset manager Fidelity Digital Assets. However, the registration process is known for its time-consuming nature.
What FCA Sarah Pritchard in the recent conference?
According to participants in the crypto industry, it can take over a year for the FCA to respond to registration applications. Pritchard acknowledged this challenge but worried that prioritizing speed might compromise consumer protection.
“Lowering standards could expose our market to exploitation by those looking to launder illicit funds, thereby harming market integrity and confidence,” Pritchard cautioned. “Instead, we take a long-term perspective. The success of crypto, and any ecosystem supporting crypto firms, hinges on the establishment and maintenance of trust.”
