The UK's Financial Conduct Authority (FCA) responded to criticism of its stringent crypto firm registration process, highlighting the necessity for maintaining the integrity of the financial system.

FCA's Approach to Innovation and Security

Val Smith, the head of payments and digital assets at the FCA, acknowledged that some view the FCA as being too tough, potentially hindering innovation and impacting the UK's status as a global financial leader. However, Smith emphasized that applications are never dismissed outright and that the focus on money laundering risks is paramount.

FCA's Strong Universal Standards

Smith rejected the notion of relaxing standards, arguing a 'race to the bottom' wouldn’t protect people or markets. FCA aims to work closely with government partners, industry stakeholders, and other jurisdictions to build a reliable crypto sector.

Support and Future of the Crypto Sector in the UK

FCA will continue to support companies in meeting required standards and filter out potential threats. Smith underscored the importance of upholding regulatory standards to protect the future.

Despite challenges for the developing crypto sector, FCA aims to foster a healthy, globally competitive, and vibrant crypto market in the UK.