UK Regulatory Body Boosts Crypto Division to 100 Staff Members
The Financial Conduct Authority (FCA), the UK’s financial watchdog, has increased its dedicated to crypto, expanding the number of staff members to 100. This move comes the FCA grapples with new regulatory challenges in the digital asset market.
According to data obtained through Freedom of Information Act request, these employees are spread across six teams that specifically focus on the crypto sector. Financial News reported this development on ThursdaySince 2020, the FCA has been responsible for overseeing money laundering and terrorist financing checks in the UK crypto sector. Its role has expanded over, and now crypto firms offering exchange services or custody wallets must be registered with the F in order to operate. In addition to recent legislative changes, it also supervises financial promotions related cryptocurrencies.
Furthermore, efforts are underway by the government to grant complete regulatory authority over crypto in the UK to the FCA.
Most of the FCA’s crypto staff is primarily engaged in approving licenses for firms and monitoring them afterwards, according to reports from an outlet. However, last year saw a significant increase in staffing within its policy department. This reflects ongoing cooperation between the FCA and government as they work together towards developing comprehensive regulations for cryptocurrencies within the UK.
The FCA spokesperson stated that their staff may work on projects related to cryptocurrencies alongside other sectors within teams that have broader responsibilities. Additionally, they are already preparing for future regulations concerning stablecoins.
The spokesperson also informed Cryptonews that their agency is focused on ensuring that crypto companies have adequate protections against financial crimes while supporting innovative firms through their Innovation Hub. They are also collaborating with both government and industry stakeholders in designing a future framework for cryptoassets.
“Our increased staffing levels reflect our investment in these priorities,” added the spokesperson.
While dedic significant resources towards overseeing cryptocurrencies in 2023, nearly a third of its financial crime at FCA were assigned tasks related specifically to dealing with businesses involved in cryptos. Their rigorous review process exposed weaknesses in anti-money laundering controls at many firms which resulted in numerous withdrawn or rejections.
Despite growing popularity of cryptocurrency exchange-traded products (ETPs), FCA cautious and has taken a measured approach towards them by restricting access only for professional investors using exchanges while disallowing retail participation.