Around the world, many countries and governments are trying to control and regulate bitcoin, cryptocurrencies, and blockchain technology in general. The British Financial Conduct Authority (FCA), is going to keep cryptocurrencies in focus and all the activities related to them and blockchain technology.
Financial Conduct Authority Regulates the Market
According to the business plan released by the British FCA for 2018 and 2019, the FCA explains that they will be following the developments in the cryptocurrency and blockchain industry very closely.
The FCA wrote as follows:
“The priorities in this Business Plan reflect the variety of changes affecting bot financial services and the wider society. Firms are being challenged by rapidly evolving users needs, as well as heightened uncertainty in the economic and political outlook. Our Business Plan shows how we will use our resources to tackle these challenges. Preparing for and implementing the changes resulting from European Union (EU) withdrawal is inevitably the priority for our discretionary activity.”
The FCA will be working side by side with the Bank of England, and with the Treasury. They will be working together in a task force which will be focused in analysing the possible positions of the government regarding cryptocurrencies.
On April the 6th, the FCA explained that firms that offer crypto derivatives have to be licensed by the FCA in order to operate in the country. If they are not able to do so, they would be conducting criminal activities.
In another document released by the FCA, the agency presents some current discussions about cryptocurrencies, distributed ledger technology, and other related activities like Initial Coin Offerings (ICOs). In the paper, the FCA explains that Initial Coin Offerings can be very risky investments and that investor could lose their funds.
In this way the FCA, in cooperation with other agencies, will start to focus on cryptocurrencies, blockchain companies, Initial Coin Offerings, and other crypto-related activities. The world is trying to regulate the market and the United Kingdom, with the FCA is not lagging behind.
Images MoneyPages and Financial Times