UK FCA stresses the need for strict regulation of crypto industry

The United Kingdom’s Financial Conduct Authority (FCA) has defended its approach to regulating the crypto industry, responding to criticism that its measures are “too heavy-handed” and could potentially stifle innovation. In an article published on its website Oct. 21, Val Smith, director of payments and digital assets at the FCA’s licensing division, stressed the importance of maintaining strict standards to protect consumers and preserve the integrity of financial markets. “Relaxing our standards and triggering a race to the bottom will not ensure that people and our markets are protected, or even function properly,” Smith wrote, adding that innovation built quickly on “unsafe, unregulated and untrusted foundations” is likely to collapse.