The UK government has announced its intention to bring cryptocurrency-related businesses under the full supervision of the Financial Conduct Authority (FCA) by 2027, extending beyond existing financial crime and anti-money laundering regulations. This move aims to make the crypto market more transparent, secure, and trustworthy for consumers. As cryptocurrencies and related businesses gain rapid global popularity, many countries are tightening oversight to combat financial fraud, money laundering, and other illicit activities. Currently, crypto firms in the UK are only subject to anti-money laundering rules, but the new proposal will place them fully under the FCA’s regulatory framework, enhancing their performance and transparency. The FCA, the UK’s primary financial regulator overseeing banking, insurance, and investment sectors, bringing crypto under its jurisdiction signifies the government’s effort to align digital assets with the traditional financial system to protect consumers and maintain financial stability. Experts believe these regulations could strengthen the crypto sector but may also impose additional legal and financial burdens on businesses. Increased regulatory scrutiny is expected to boost global investor confidence, positioning the UK as a secure crypto hub. This development is seen as a significant step in solidifying the legal status of cryptocurrencies worldwide and combating financial fraud, potentially setting a precedent for other nations.
Source: decrypt
