- The FCA is opening a consultation on crypto rules.
- The consultation is the latest sign that the UK is inching closer to crypto rules.
- Donald Trump’s UK visit is expected to create a coordination deal between Britain and the US.
On Wednesday morning, the Financial Conduct Authority launched an open call for comment on how the UK’s top financial watchdog should regulate crypto companies in the country.
Its efforts aim to increase consumer protection, fight financial crime and sanction-skirting, and boost company governance and operational resilience. The consultation period closes on November 12.
The regulator added that it would base its rule-making on previous guidelines provided in its FCA Handbook, which is a set of rules banks, insurers, investment firms and other financial institutions must follow in the UK.
“We intend to apply the majority of existing rules and guidance in our Handbook to cryptoasset firms in the same way as we do to traditional finance firms, in line with our overarching principle of ‘same risk, same regulatory outcome,’” the consultation said.
Upping the ante
The consultation is the latest example of how British regulatory efforts are gradually gaining momentum.
The FCA’s drive for feedback comes on the back of the Treasury publishing a draft proposal in April to bring certain crypto activities companies under the agency’s umbrella.
If approved, the City watchdog will regulate activities such as issuing qualifying stablecoins, safeguarding qualifying cryptoassets and specified investment cryptoassets, operating a qualifying cryptoasset trading platform, intermediation, and staking.
“Robust rules around crypto will boost investor confidence, support the growth of fintech and protect people across the UK,” Rachel Reeves, UK finance minister, said when unveiling the draft law in April.
Enter Trump
US President Donald Trump’s state visit on Wednesday is also expected further to fuel cross-Atlantic cooperation between the UK and the US.
That’s according to people familiar with the matter talking with the Financial Times.
They said the visit enabled Reeves to meet with US Treasury Secretary Scott Bessent, as well as a smattering of crypto companies and banks.
The US President swept the American elections last November thanks in large part to hefty backing from crypto firms, including Coinbase and Ripple.
Since then, he has issued pro-crypto executive orders, appointed industry supporters to key government roles, hosted a crypto summit at the White House, and signed a stablecoin bill into law.
Ahead of the president’s visit, industry lobbyists ramped up their efforts ahead of the US president’s state visit with a string of open letters, opinion pieces, and ads, as well as a heavy presence at the right-leaning Reform Party’s conference earlier in September.
Eric Johansson is DL News’ managing editor. Got a tip? Email at eric@dlnews.com.
