The chairman of the UK’s Financial Conduct Authority, Charles Randall, has urged lawmakers to be cautious following an announcement last month to make Britain a “crypto hub”.
Charles Randall, a 63-year-old lawyer who advised the UK Treasury during the 2008 financial crisis, has cautioned against hasty drafting of crypto regulations. Appointed as FCA’s chairman in April 2018 for a five-year term, Randall said regulators need to be realistic when estimating the time it takes to draft rules to oversee the digital asset industry and in the process. Emphasized the importance of the independence of the FCA. It is important that… there are strong safeguards in place to ensure – not only the interests of those making money from advancing crypto products, but also the interests of those whose savings would be put at risk,” he said. Said, speaking at Queen Mary University of London on Friday.
Glenn wants to make UK a crypto hub
The chairman’s words come amid the government’s eagerness to make the UK a center for cryptocurrency in response to recent industry resistance against the FCA’s strict anti-money laundering rules. In April, City Minister John Glenn outlined plans for the UK to become a hive of crypto activity, tabulating new stablecoin regulations and NFTs created by the Royal Mint. “We see huge potential in crypto,” Glenn said. The UK Treasury has announced plans to convert existing laws governing e-money used in smartphone apps to stablecoins. Glenn also announced an “engagement group” where players from the crypto industry can meet with regulators, a “crypto sprint” to get input from the private sector about crypto and to examine the legitimacy of decentralized autonomous organizations. a project.
Randall, who announced his early departure last year, advocated vigorously in his speech to protect investors against “purely speculative crypto tokens.” “Should people be encouraged to believe that these are investments when they have no underlying value? When the price of bitcoin could easily halve within six months, as has happened recently, and some Other speculative crypto tokens gone to zero? He emphasized that crypto-assets should be thoroughly scrutinized before the FCA takes on the burden of regulation. There is also a significant cost burden on the regulatory body to bring crypto under its umbrella. Referring to the additional £8m increase in costs to regulate crypto, he said, “Regulating crypto also means deciding how the FCA will raise funds to pay for the very significant costs of this additional regulation. ” £8m will fund the technical infrastructure and necessary expertise.
Randall criticizes celebrities who create ‘Fomo’
Randall’s warning extends to September 2021, when he called on regulators to protect vulnerable segments of the population from risking their financial futures on questionable crypto schemes, criticizing the promotion of cryptocurrency speculation by social media influencers such as Kim Kardashian. urged. He said in a speech at the time, “It is difficult for regulators around the world to stand up and watch people, sometimes very vulnerable people, put their financial futures at risk due to misinformation and fear of missing out.” is based on.”
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