The United Kingdom’s Financial Behavior Authority (FCA) has plans to give up some of its rules for cryptocurrency companies, according to a Financial Times (FT) report on Wednesday.
However, in other areas, the FCA intends to harden the rules in which they belong to the specific risks of the industry, such as cyber attacks.
The financial control agency wishes to adapt its existing rules for financial services to the unique nature of cryptoassets, the FT reported, citing a consultation document published on Wednesday.
“It must recognize that some of these things are very different,” said David Geale, executive director of the FCA’s digital payments and finances, in an interview, according to the report, adding that an “elevation and fall” of the existing traditional finance rules would not be effective with crypto.
One of those areas that can be managed differently is the stipulation that a company “must carry out its business with integrity” and “pay due consideration to the interest of its customers and treat them fairly.”
Cryptographic companies would be given less strict requirements than banks or investment platforms in the rules related to managers, systems and higher controls, since cryptocurrency companies “do not usually represent the same level of systemic risk,” said the FCA.
Companies would not have to offer customers a cooling period due to the voltile nature of cryptography prices, or technology would be classified as a subcontracting agreement that requires additional risk management. This is because Blockchain technology often has no permission, which means that anyone can participate without the contribution of an intermediary.
Other areas of cryptographic regulation remain undecided.
The FCA has plans to completely integrate cryptocurrencies into its regulatory framework since 2026.
