The U.K.’s Financial Conduct Authority (FCA) Seeks Feedback on Crypto Regulation
The U.K.’s Financial Conduct Authority (FCA) has released a discussion paper seeking views on intermediaries, staking, lending, borrowing, and decentralised finance (DeFi) in the crypto industry. This move comes after the Treasury announced draft legislation that will bring specific crypto activities within the FCA’s regulation.
The FCA aims to create a regulatory framework that provides clarity for firms operating in the crypto space while ensuring market integrity and consumer protection. David Geale, the executive director of payments and digital finance at the FCA, highlighted the importance of regulating the growing crypto industry to promote innovation and safeguard consumers.
With the increasing popularity of cryptocurrencies and DeFi platforms, the FCA recognizes the need to establish guidelines that address the unique challenges and risks associated with these digital assets. By engaging with stakeholders and seeking feedback on key issues such as intermediaries and lending practices, the FCA aims to shape a comprehensive regulatory framework for the crypto sector.