Former UK FCA Head Reveals Political Pressure to Allow Crypto Firms to Trade

Former UK FCA Head reveals political pressure to welcome crypto firms and the challenges in regulating the industry. Find out more here.

Posted 7 months ago in Blockchain


Former UK FCA Head Charles Randell speaking at a conference discussing the political pressure to allow cryptocurrency firms to trade.

The former head of the UK’s Financial Conduct Authority (FCA), Charles Randell, said he was politically pressured to welcome crypto firms. The prevailing rhetoric was around how the UK was missing out on an “innovative activity” that was gaining traction in other jurisdictions.

Randell, who stepped down in the spring, said many of the firms that were not allowed to operate are now being investigated by the US Department of Justice. While he didn’t mention names, the FCA denied Binance and FTX licenses to operate in the UK, both of which are linked to ongoing litigation in the US.

Speaking at a conference hosted by the Prudential Regulation Authority of the Bank of England, Randell reflected: “… all the evidence that we had at the FCA was that it wasn’t a very good idea.” He said the saga highlighted the challenge in regulating the industry while preventing its capture by the industry or politics.

During his tenure at the agency, Randell warned against rushing to make the UK a crypto hub. In a speech at the time, Randell argued for an “independent” regulator to implement “strong safeguards” to protect investors. His comments followed a speech by Treasury Secretary John Glen outlining a government roadmap to attract and grow crypto startups. Former Chancellor and current Prime Minister Rishi Sunak first promoted the narrative of turning the UK into a “global hub” for crypto in April 2022.

So far, the FCA has rejected applications by most crypto firms to secure licenses in the UK. In most of the rejected applications, the FCA cited inadequate money laundering controls as the reason. Since then, however, King Charles gave his royal assent to a bill designating crypto trading a regulated activity. It gives the UK Treasury, the FCA, the Bank of England, and the Payments Systems Regulator rulemaking powers.

The rules may require another 12 months to be finalized, Financial Services Minister Andrew Griffith said in April. The UK Law Commission has proposed ownership guidelines that deem crypto as assets protected by property law.

In the meantime, it appears that political attention has shifted from crypto to artificial intelligence (AI). Sunak will host a meeting of top academics and executives from Google, DeepMind, OpenAI, in November to discuss AI’s future.

Got something to say about former FCA head Charles Randell‘s claims of facing political pressure to approve crypto or anything else? Please write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or Twitter.

Last updated 9/20/2023, 4:57:08 PM

0
0
Flag
0 Views
f331c18a-f94b-4ef1-9ae1-596b61b1a82d

Related Articles


Related Questions

News Letter

Subscribe to the CryptoCat.ai newsletter to stay updated with the latest cryptocurrency news, insightful articles, market trends, and more – delivered directly to your inbox!




Twitter

Is email too old school? Well you can get your news directly on twitter just by following us

https://cryptocat.ai