UK and US to work together on cryptocurrency regulation

A common front to better monitor cryptocurrencies? UK and US regulators confirm that they will work together to supervise the industry.

UK and US go hand in hand to monitor cryptocurrencies

The news was confirmed by Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), the British financial policeman. In a speech delivered at the end of last week, he confirmed FCA’s plans in terms of regulation. In particular, he stressed an upcoming merger of UK and US regulatorsin the cryptocurrency sector:

โ€œThe US and UK will strengthen their ties when it comes to cryptocurrency regulation and market developments, including around stablecoins and exploration of central bank digital currencies. “

Rathi justifies this choice with the preponderant place occupied by the two economies, explaining that “we have two of the largest and globally interconnected financial centers in the world “. Although this is not expressed by the CEO of FCA, there is also the issue of Brexit. The UK has been more isolated from a regulatory perspective since leaving the European Union, and is therefore looking for allies in this area.

๐Ÿ‘‰ To go further – Stablecoin, all about this type of cryptocurrency

published by editions Larousse

A sector that has evolved?

In particular, Nikhil Rathi believes that industry players are no longer opposed to regulation, but rather welcome these new cadres:

โ€œIn the past, innovative companies would have asked for less regulation. Now they understand and appreciate the fact that the rules serve to give certainty. “

Several joint initiatives are already underway. This week, the UK, US and Singapore announced the launch of the IOSCO initiative. This working group will work on the management of risks associated with decentralized finance and the cryptocurrency markets as a whole.

Historically, the UK has been quite hostile to the cryptocurrency industry. In March, the FCA announced the temporary closure of all Bitcoin (BTC) distributors in the UK, none of which were compliant with the rules. Alongside the United States, the United Kingdom also had it he said he wanted better control over stablecoins, following the collapse of the Earth (LUNA). It therefore remains to be seen whether the country will be able to be a vector of innovation while providing a broader framework for the sector.

๐Ÿ‘‰ Read more – UK and US want to regulate stablecoins after the collapse of the FSO

cryptoast logo

Discover Alira

The blockchain school

toaster icon

Investing in cryptocurrencies is risky (find out more)

Source: FCA

Newsletter ๐Ÿž

Get a cryptocurrency news summary every Sunday ๐Ÿ‘Œ And that’s it.

What you need to know about affiliate links. This page presents assets, products or services related to investments. Some links in this article are affiliates. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus using our links.

Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damage or loss caused as a result of the use of a good or service highlighted in this article. Investments related to cryptocurrencies are risky in nature, readers should do their own research before taking any action and invest only within the limits of their financial capabilities. This article does not constitute investment advice.

Leave a Comment