The Financial Conduct Authority (FCA), a government agency in the UK, has a new head, and he has launched a harsh attack on the larger crypto business. posing the possibility of a confrontation between the UK authorities and cryptocurrency companies operating there.
In his testimony before the Treasury Select Committee, Ashley Alder said that he had found crypto platforms to be “deliberately elusive.” Large firms within the sector are involved in widespread money laundering, he claimed. Alder warned that cryptocurrency businesses in the UK will face challenges as the FCA assumed additional regulatory responsibilities.
Ashley Alder is scheduled to resume his position as the head of FCA in January 2023 after being appointed in July 2022. He will scrutinize the rise of buy-now-pay-later retail debt and regulate crypto assets and Decentralised Finance (Defi). He presently oversees the International Organization of Securities Commissions (IOSCO) and is the chairman of Hong Kong’s Securities and Futures Commission (SFC).
Alder might now find himself at odds with the British government and Rishi Sunak, the country’s new prime minister. The young leader has made it clear that he is committed to turning the UK into a cutting-edge centre for the cryptocurrency industry.
Sunak, as the nation’s finance minister in the Boris Johnson administration, was a fervent advocate for cryptocurrencies and CBDCs. He and City Minister John Glen unveiled a comprehensive proposal in April of this year to further UK regulation of cryptocurrencies.
Alder adopted a similar aggressive attitude against money laundering driven by cryptocurrencies in his present position in Hong Kong. The SFC took action to licence virtual asset service providers (VASP) and limit their interactions with retail clients in May of last year.
Recent events in the cryptocurrency industry, according to Andrew Griffith, the UK’s Economic Secretary, have highlighted the need for a prompt, open, and effective framework. Additionally, he noted that “The Financial Services and Markets Bill,” which he had written a letter demanding in October, aid the nation’s authorities in creating a framework for the effective regulation of crypto assets and stablecoins. The UK intends to consult other regimes for the remaining crypto assets later this year.
The Law Commission of England and Wales, a constitutionally independent body charged with reviewing and updating the law, disclosed in July of this year that it wants to broaden property laws to include cryptocurrencies and non-fungible tokens (NFT).