The Financial Conduct Authority (FCA) of the United Kingdom plans to give up some of its rules for cryptocurrency companies, according to a Times (FT) financial report on Wednesday.
However, in another region, the FCA intends to tighten the rules where they concern the risks specific to industry, such as cyber attacks.
The financial guard dog wishes to adapt its existing rules for financial services companies with the unique nature of cryptocurrency, said the FT, citing a consultation document published on Wednesday.
“You must recognize that some of these things are very different,” said David Geale, executive director of the FCA for digital payments and finances, in an interview, according to the report, adding that an “elevator and decrease” of existing traditional financing rules would not be effective with the crypto.
Such an area which can be managed differently is the stipulation that a company “must carry out its activities with integrity” and “by taking into account the interest of its customers and treat them fairly”.
Cryptographic companies would receive less strict requirements than banks or investment platforms on rules concerning senior executives, systems and controls, because cryptocurrency companies “generally do not have the same systemic risk level,” said FCA.
Companies would also not have to offer customers a cooling period due to the voltatile nature of cryptography prices, and technology would not be classified as an outsourcing arrangement requiring additional risk management. Indeed
Other areas of cryptographic regulation remain undecided.
The FCA plans to fully integrate the cryptocurrency into its regulatory framework from 2026.
