The Financial Conduct Authority (FCA) has become the latest regulator to see for more power to regulate the cryptocurrency market.
FCA chair wants to regulate the digital token issuers
The chairman of the United Kingdom Financial Conduct Authority (FCA), Charles Randell, revealed in a speech earlier today that the agency needs more power to regulate the cryptocurrency market.
Randell admitted that regulating the cryptocurrency market is a tough task due to its nature. He stated that “Even with better-targeted laws, the internet will continue to be a very challenging space for regulators. Hercules rerouted two rivers to wash the stables out, and we’ll need 2 streams to tackle the problem of online financial scams: appropriate regulation, including self-regulation by online platforms and robust enforcement by the authorities; and greater consumer awareness about online scams.”
The FCA chair said there needs to be regulation on how the token issuers operate. Doing so would ensure that consumers are protected. “Any effective system of regulation would require a business seeking registration or authorisation with the FCA to bring itself firmly within our reach, with people and resources that we could access in order to supervise and enforce our requirements,” Randell added.
Randell is not a fan of cryptocurrencies
The FCA chair didn’t hide his distrust for the cryptocurrency market. He stated that he believes the end would not be good. He said, “These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well.”
The FCA is the latest regulator to seek more power to regulate certain aspects of the cryptocurrency space. The SEC chair Gary Gensler had asked the US Congress to provide the agency with more power and resources to regulate the crypto space.