UK and US to work together on cryptocurrency regulation

A common front to better monitor cryptocurrencies? The regulators of the United Kingdom and the United States confirm that they will work together on the supervision of the sector.

UK and US go hand in hand to monitor cryptocurrencies

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

“The US and UK will strengthen their ties when it comes to crypto-asset regulation and market developments – including around stablecoins and exploring central bank digital currencies. »

Rathi justifies this choice by the preponderant place occupied by the two economies, explaining that “we have two of the largest and most globally interconnected financial centers in the world”. Although this is not expressed by the chief executive of the FCA, there is also the matter of Brexit. The United Kingdom finds itself more isolated in terms of regulation since leaving the European Union, and is therefore looking for allies in this sector.

👉 To go further – Stablecoin, all about this type of cryptocurrency

published by editions Larousse

An industry that has evolved?

Notably, Nikhil Rathi considers that industry players are no longer in opposition to regulation, but rather welcome these new frameworks:

“In the past, innovative firms would have asked for less regulation. Now they understand and appreciate the fact that the rules are there to provide certainty. »

Several joint initiatives are already underway. This week, the United Kingdom, the United States and Singapore announced the launch of the IOSCO initiative. This working group will work on the management of risks related to decentralized finance and the crypto markets as a whole.

Historically, the UK has been rather hostile to the cryptocurrency industry. In March, the FCA announced the temporary closure of all Bitcoin (BTC) distributors in the United Kingdom, none of which were in compliance with the rules. Alongside the United States, the United Kingdom also had claimed to want better control over stablecoinsfollowing the collapse of Terra (LUNA). It therefore remains to be seen whether the country will manage to be a vector of innovation while providing a broader framework for the sector.

👉 Read more – UK and US want to regulate stablecoins after UST collapse

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Source: FCA

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