Crypto Firms React to The FCA’s Upcoming Policy Paper
The controversial cryptocurrency market has its detractors and its cheerleaders. From India to China and beyond, governments are taking stances on this new market. In fact, the Financial Conduct Authority (FCA) in the UK recently announced plans to release a policy paper detailing what should be happening going forward on the regulatory side.
The FCA’s paper, when concluded, will represent one of the biggest regulatory forays into the field in some time, and is set to fundamentally alter the cryptocurrency market as we know it. It’s actually part of an effort that launched a task force effort between the Bank of England and the British Treasury, reports note.
That led to not only remarks from the deVere Group’s outspoken CEO Nigel Green, but also word from Play2Live’s CEO and founder, Alexey Burdyko.
Green, not surprisingly, applauded the move, saying “…the FCA’s proactive approach towards the crypto market must be welcomed as it will help protect investors and tackle illicit activity and unscrupulous firms. I expect the regulator to issue warnings and this caution should also be championed as these digital assets remain highly speculative and the market relatively new.”
Meanwhile, Burdyko was a little more measured, saying “It is understandable that regulatory bodies are beginning to take more and more notice of cryptocurrencies, their uses and whether or not they follow the necessary guidelines. Anything that helps to protect investors and crypto-enthusiasts is needed, to ensure trust and momentum in the space can continue to grow….”
Both remarks have a potential downside; let’s not forget the lesson recently learned from India, who pretty much shut down all cryptocurrency access by forbidding anyone connected to the Reserve Bank of India from paying for cryptocurrencies. That basically drove what’s left of the market underground. If the FCA’s paper suddenly decides to go the same route, will Green and Burdyko be similarly enthusiastic? Green should take note that the Indian government also “issue(d) warnings” until it pulled the plug altogether.
A measured response from the FCA would be helpful, lending a note of legitimacy to the cryptocurrency market and improving the chances it will go mainstream. If the FCA’s response is more forceful, however, it could shut down another part of this market like it did in India.