Protecting Crypto Users Is More Important Than Faster UK Registration: FCA Executive

An FCA executive stated on Thursday that the U.K.’s Financial Conduct Authority would not sacrifice trust for faster registration of cryptocurrency businesses. In simpler terms, they are prioritizing trustworthiness over expediting the process to approve crypto companies.

At TheCityUK conference, Sarah Pritchard, the FCA’s executive director for markets and international, cautioned against overemphasizing numbers in response to criticisms of lengthy registration processes for crypto firms: “Over-reliance on numerical aspects could potentially damage trust and harm our reputation.”

Since 2020, the Financial Conduct Authority (FCA), the UK’s primary crypto regulatory body, has been reviewing applications from crypto companies aiming to conduct business in the country while adhering to its anti-money laundering regulations. Over 300 firms have sought approval from the FCA during this period, with approximately 45 of these companies ultimately receiving the green light.

Some well-known businesses in the digital asset sector, such as Gemini (a crypto exchange), Revolut (a payments platform), and Fidelity Digital Assets (an asset manager), have submitted their applications. However, the approval procedure may take some time.

Last year, individuals involved in the cryptocurrency sector shared with CoinDesk that it took approximately one year for the Financial Conduct Authority (FCA) to respond to their registration application. During her speech on Thursday, Pritchard mentioned the potential need to quicken this process, but warned that doing so could potentially put consumers at risk.

“Lower standards could leave open our market to abuse by those who seek to launder criminally made cash, damaging market integrity and confidence in financial markets,” Pritchard said. “Instead, we take a longer view. Crypto’s success – and the success of any base for crypto firms – relies on trust being built and maintained.”

Read more: UK Crypto Firms and Regulator Blame Each Other for Industry Exodus