The Financial Conduct Authority, well-known for its skepticism of digital assets, adopted a different approach in its maiden CryptoSprint, which took place earlier this month.
Participants worked in mixed-discipline teams over two days to explore the crypto business’s problems, including how the Financial Conduct Authority, the UK’s financial regulator, should encourage and balance innovation with consumer protection rules, according to the FCA’s website.
The CryptoSprint looked into handling information about crypto-asset issuance, regulatory duties, and custody rules. Many CEOs from digital asset companies told CoinDesk that they desired a collaborative approach that encouraged innovation. Some of the delegates at the FCA’s CryptoSprint were convinced that this was doable.
“The previous two days have been productive, with participants working closely together to develop future policy,” says one participant. “CoinDesk received a statement from the FCA. “It was surprising to see how well the overall consensus on future crypto market regulation matched our own, with consumer protection and market integrity critical to maintaining trust in this rapidly expanding sector.”
According to Johnson, the FCA heard from various digital asset industry stakeholders at the CryptoSprint, including CEOs, compliance chiefs, academics, and attorneys. In addition to the FCA officials who facilitated the event, Johnson said there were more than 600 applicants and 96 attendees.
According to Ian Taylor, a member of Crypto UK, the event featured FCA Chief Executive Nikhil Rathi, HM Treasury’s Head of Banking David Raw, and Jessica Rusu, the FCA’s Chief Data, Information, and Intelligence Officer. According to Taylor, the FCA’s attendance demonstrated that the occasion was taken seriously.
A San Francisco-based Kraken exchange representative was among the international companies present.
Curtis Ting, Kraken’s managing director for Europe, the Middle East, and Africa, said, “Participating in well-formed, open, and transparent policy conversations with the FCA was encouraging.” “The CryptoSprint’s underlying admission that offshore enterprises being unaccountable to U.K. legislation represent a hurdle to the United Kingdom’s desire to become a world-class fintech powerhouse was particularly encouraging to us.”
In a statement, Sabrina Wilson, chief operating officer of Copper, a custodial solution provider on the FCA’s temporary registration system, said that participants agreed that a global effort to harmonize regulation would assist the digital asset sector in maturing growing in terms of adoption.
Approximately half of the people attending the CryptoSprint, according to CryptoUK’s Taylor, believe that the regulator has not listened to the industry in the past. That isn’t to say it won’t overlook cryptocurrency advocates in the future.
“I can only speak from my personal experience.” The FCA hasn’t been paying attention to the business community. The main plus is that they’re eager to learn,” Taylor remarked.
The FCA established a temporary registration regime (TRR) to allow crypto firms that were not thoroughly registered to continue operating while its licensing system was implemented. Even though over 100 organizations applied for registration, just five are currently on the TRR list, with 34 having full authorization.
According to Zumo’s Johnson, the registration process has posed a challenge to the sector regarding anti-money laundering.
“How can we encourage people to be regulated within the United Kingdom in order to more fully accomplish their own objectives if we want to protect UK customers?” According to Johnson.