📍Yesterday, the Treasury Select Committee took oral evidence from the Financial Conduct Authority's Chair and Chief Executive on a range of issues including #crypto and digital assets.

During the session, multiple questions were raised about the #regulation of #cryptoassets and digital assets.

✅ FCA leadership confirmed its direction of travel, addressed the scale of crypto adoption, and outlined expectations for firms entering the regulatory perimeter.

🎤 A Summary of Points Raised:

➡️ FCA Affirms Approach to Crypto Regulation: The FCA reiterated that it is actively working to bring the crypto sector into regulation, aligning with global developments.

➡️ Crypto Adoption in the UK is Rising Rapidly: The FCA cited internal research showing significant growth in crypto ownership among the UK public.

➡️ Timeline and Structure for Regulation: The FCA confirmed that crypto regulation will follow a phased “road map” approach, dependent on legislation, with a longer-term horizon.

➡️ High AML Failure Rate Among Applicants: The FCA emphasised the poor anti-money laundering (AML) controls in the sector to date, noting a high rejection rate for crypto registration applications.

➡️ Global Regulatory Comparisons and Risk Appetite: The FCA highlighted differences in regulatory posture globally, suggesting some countries are taking higher risks with consumer-facing crypto products.

➡️ Crypto-Related Enforcement and Financial Crime: The FCA also noted that crypto is an increasing area of focus within its broader financial crime enforcement remit.

#FCA #Crypto #Regulation #Blockchain