UK Regulator Launches Consultation on Crypto Oversight
The UK’s Financial Conduct Authority (FCA) is taking another step toward regulating crypto — and this time, they want input from the public and industry insiders.
A new discussion paper, released Friday, invites feedback on how to approach key areas of the crypto space, including:
* Intermediaries
* Staking
* Lending and Borrowing
* Decentralized Finance (DeFi)
This follows draft legislation introduced by the Treasury earlier in the week, which proposes bringing certain crypto activities under the FCA’s oversight.
“Crypto is a growing industry. Currently largely unregulated, we want to create a crypto regime that gives firms the clarity they need to safely innovate, while delivering appropriate levels of market integrity and consumer protection,” said David Geale, executive director of payments and digital finance at the FCA.
The goal? To strike a balance between encouraging innovation and ensuring that the market is fair, transparent, and safe for consumers.
As crypto continues to evolve, the FCA’s approach could play a major role in shaping how the industry operates in the UK — and potentially set the tone for other countries to follow.