The Nationwide Audit Workplace (NAO) in the UK has raised considerations concerning the effectiveness of the Monetary Conduct Authority (FCA) in regulating the cryptocurrency trade.
In a latest report titled ‘Monetary providers regulation: adapting to vary,’ the NAO has claimed that the FCA is being sluggish to reply and take motion in opposition to illicit actions within the crypto trade.
Excessive workers turnover charges and an absence of specialist abilities improve danger to @TheFCA‘s key commitments.
It has responded by recruiting and spending £317m on its change programme.
This could assist it put together monetary providers for the long run.
Extra: https://t.co/U66ep8J8Sp pic.twitter.com/GtG5TAjl4t
— Nationwide Audit Workplace (@NAOorguk) December 8, 2023
The NAO highlighted that it took the FCA virtually three years to take motion in opposition to unlawful operators of crypto ATMs. On July 11, Cointelegraph reported that the FCA had shut down 26 crypto ATMs as a part of a coordinated investigation. In the meantime, the NAO acknowledged:
“Whereas the FCA has required crypto-asset corporations to adjust to anti-money laundering rules since January 2020, and commenced supervision work together with partaking with unregistered corporations, it didn’t start taking enforcement motion in opposition to unlawful operators of crypto ATMs till February 2023.”
The NAO asserts that the delay in registering crypto corporations in search of regulatory approval from the FCA was attributed to the absence of specialised crypto personnel.
“For instance, a scarcity of crypto abilities meant the FCA took longer than deliberate to register crypto-asset corporations below cash laundering rules,” the report declared.
On Jan.27, Cointelegraph reported that the FCA has solely authorised 41 out of the full 300 crypto agency functions in search of regulatory approval, for the reason that guidelines had been carried out in January 2020.
Associated: UK tops crypto exercise in Central, Northern and Western Europe: Chainalysis
This comes after the FCA lately launched steerage materials to assist crypto corporations higher perceive the brand new crypto promotion guidelines that lately got here into impact.
On November 2, Cointelegraph reported that the FCA launched a “finalized non-handbook steerage” for compliance with the brand new guidelines.
The brand new guidelines particularly relate to how crypto corporations are allowed to advertise to prospects.
The FCA outlined points equivalent to crypto corporations making claims concerning the ease of utilizing crypto with out highlighting the dangers concerned, in addition to danger warnings not being seen sufficient in small fonts.
Journal: Crypto regulation: Does SEC Chair Gary Gensler have the ultimate say?
