UK and US Financial Regulators to Cooperate on Crypto Regulation

Financial regulators from the United Kingdom and the United States are set to cooperate on a framework for cryptocurrency regulations.

The Chief Executive of the United Kingdom’s Financial Conduct Authority (FCA) Nikhil Rathi announced the international collaboration during a speech at the Peterson Institute for International Economics.

“Many of the issues we face also require an international response. We greatly value ongoing enforcement cooperation between the FCA and US agencies, including the SEC, CFTC, and DOJ in particular, which has created an important set of precedents that demonstrate the ability to act effectively on a global basis,” said Rathi.

According to Rathi, the UK’s relationship with US regulators is “essential” for consistent outcomes and for “deepening” the ties between the two countries on crypto-assets regulations and market developments.

Rathi further elaborated that because many of the FCA’s regulations were related to anti-money laundering, the organization lacked the authority to approve the development of a regulatory framework for cryptocurrencies in the UK.

“These conversations are vital. We are demonstrably supporting responsible use cases for the underlying technology while ensuring it is not at the expense of appropriate consumer protection or market integrity,” said Rathi.

Rathi also disclosed during his speech that a multi-national task force focused on decentralized finance and crypto market integrity risks was launched this week in collaboration with the US and Singapore.

As the UK’s financial watchdog, the FCA keeps an eye on more than 51,000 financial services firms and financial markets nationwide, including the 35 registered cryptocurrency businesses that have been given permission to operate in the country since August 2020.

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