The UK’s Financial Conduct Authority (FCA) has defended its strict cryptocurrency regulations in response to claims they may hinder innovation.
Val Smith, head of payments and digital assets at the FCA, emphasized the importance of maintaining rigorous standards to protect consumers and the integrity of financial markets.
She cautioned that lowering standards could jeopardize safety and allow illegal activities, such as terrorism financing.
Smith acknowledged criticism regarding the low number of registered crypto firms but clarified that applications are evaluated carefully, not rejected arbitrarily.
Despite concerns from the crypto community about the lengthy registration process—only four of 35 applications were approved in the past year—Smith stated the FCA is committed to supporting businesses through pre-application consultations.
Additionally, the FCA and Bank of England have launched a sandbox initiative to explore the use of digital ledger technology in financial securities management.
South Korea’s top financial watchdog has issued informal guidance urging local asset managers to scale back their investments in crypto-related stocks, according to a Korean Herald report.
In a surprising move on Tuesday, the U.S. Securities and Exchange Commission (SEC) initially approved Bitwise’s proposal to convert its cryptocurrency index fund into a full-fledged exchange-traded fund (ETF)—only to halt the decision just hours later.
Senators Tim Scott, Cynthia Lummis, Bill Hagerty, and Bernie Moreno (R-OH) have released a discussion draft of a new digital asset market structure bill—framed as the Senate counterpart to the CLARITY Act.
Five major banking associations are urging the Office of the Comptroller of the Currency (OCC) to delay approval of new national trust bank charters for digital asset firms, including Ripple, Fidelity Digital Assets, National Digital TR CO, and First National Digital Currency Bank.