Katharine Wooller, Business Unit Director at Coin cover Thinking FCA is taking an encouraging step. He feels that the UK’s regulatory approach has been slow, so he thinks being more proactive about protecting users is a positive step.
“Trust in cryptocurrencies has collapsed once again following the FTX scandal. And if it weren’t for the collapse of a trusted crypto brand, thefts, hacks and scams continue to drive consumer anxiety and skepticism across markets. The unfortunate reality is that digital assets remain vulnerable to abuse from a small group of bad actors, which is why we need to introduce proper safeguards and governance standards.
Without regulation, the market will continue to be the Wild West with a very high level of risk. However, if properly implemented, regulations can reduce these risks and protect investors. At the same time, this will also prevent the failures and corruption that create wider market turmoil and ultimately give crypto the trust and security it needs for growth.”
A little less than a year ago the Minister of Finance, Rishi Sunak said:
“It is my ambition to make the UK a global hub for crypto asset technology, and the steps we have outlined today will help ensure companies can invest, innovate and scale in the country.”
So far the FCA, also known as the UK financial watchdog, has granted approval to only 41 out of 300 apps of crypto companies seeking regulatory approval to date.