UK’s Financial Regulator Defends Strict Crypto Rules

The UK’s Financial Conduct Authority (FCA) has defended its strict registration requirements for cryptocurrency firms in response to recent criticism.

According to Val Smith, head of payments and digital assets at the FCA, these measures are essential for safeguarding the integrity of the financial system.

Smith addressed concerns about the high rejection rate for crypto firm applications and emphasized the importance of maintaining trustworthy standards in a competitive industry.

She refuted claims of arbitrary rejections and explained that the FCA considers the significant risks associated with the crypto industry, such as terrorism, organized crime, and human trafficking.

Rejecting calls to lower registration standards, Smith warned that doing so could undermine the safety of the market and lead to a “race to the bottom.”