The UK's Financial Conduct Authority (FCA) has defended its strict regulations on the crypto industry amidst criticism that they may hinder innovation and global leadership in finance. Val Smith, head of payments and digital assets at the FCA, asserted the necessity of maintaining high standards to protect consumers and ensure market integrity. She emphasized that easing regulations could lead to severe consequences, including the facilitation of organized crime and terrorism financing. Although critics have pointed out that the FCA's stringent registration process has resulted in only four approvals out of 35 applications last year, Smith clarified that each application is subject to a thorough evaluation based on established criteria to mitigate risks. In response to industry concerns, the FCA offers support to help potential crypto businesses navigate the registration process. Despite challenges, the FCA remains focused on balancing regulatory oversight with the need for innovation in the evolving tech landscape.

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