US and UK to strengthen collaboration on crypto regulation, FCA says

UK and US regulators will work together and deepen ties as they focus on crypto regulation, the Financial Conduct Authority’s CEO said.

“One area of global focus is crypto, both opportunities and risks,” chief Nikhil Rathi said at the Peterson Institute for International Economics recently. 

“The U.S. and U.K. will deepen ties on crypto-asset regulation and market developments, including in relation to stablecoins and the exploration of central bank digital currencies.”

He said the friendship between the UK and US is essential and both align in their views on regulation. 

“We both pursue a transparent, proportionate response to regulation. Both our countries have a thirst for innovation. Our legal systems are rigorous in holding us as regulators to account,” he mentioned. “We have two of the largest and globally interconnected financial centres in the world.”

Rathi said that Brexit gave the UK an opportunity to adapt the regulatory as needed to adapt to challenges. He said firms now appreciate the certainty provided by crypto regulation.

“Many of the issues we face also require an international response,” he said. “We greatly value ongoing enforcement cooperation between the FCA and US agencies, including the SEC, CFTC and DOJ in particular, which has created an important set of precedents that demonstrate the ability to act effectively on a global basis.”

The FCA supports innovation and using the underlying technology in crypto without sacrificing consumer protection or market integrity, he said.

Regulators around the world have been focused on crypto regulation especially following the recent crash that sent prices of major cryptocurrencies plummeting and caused widespread losses.

The EU recently agreed on its MiCA rules for crypto, which is set to be the world’s first regulatory regime on crypto.