Financial supervisory authority warns Great Britain against creating a crypto hub

The chairman of the British financial supervisory authority has warned of a hurry to add cryptom markets to the area of ​​responsibility of the authority after the government made an ambitious offer to develop a new regulation and to establish Great Britain to a crypto hub.

Charles Randell, Chairman of the Financial Conduct Authority, called for "realism" how long the supervisory authority would take to prepare to prepare for "purely speculative crypto tokens", and how much crypto companies would have to improve before they could officially allow it.

He also emphasized the importance of the independence of the FCA at a time when some in the crypto industry asked the government to urge the regulatory authority to make digital assets more accurate.

"It is crucial.. "This requires a strong and independent supervisory authority for financial behavior."

The chairman of the FCA, which is expected to leave his post this spring, also said it was not clear how the regulatory authority would pay for the "very significant costs" that would result in the admission of the crypto supervision.

Randell's comments follow a speech by the Minister of Economic Affairs before the Ministry of Finance in April in April, in which the government's endeavors were presented to "make the Great Britain" the very best place in the world to found and scale crypto companies.

Glen said that the government was determined to win global crypto players for the Britain's branch, a plan that would contain new regulations and would probably mean to transfer the FCA more powers.

The attempt to compete with competing crypto centers such as Switzerland and Dubai met with skepticism for digital assets. Many British crypto entrepreneurs believe that the FCA is relentlessly against digital assets, and crypto companies have argued with the regulatory authority about how it implemented money laundering rollers.

Randell said that the regulatory authority was open to innovations, including the use of distributed Ledger technology and the potential for properly regulated stable coins-crypto tokens, which are connected to traditional assets such as US dollar-to reduce "costs and friction" in the payment sector.

Randell questioned the goal of supervising more speculative cryptocurrencies. "Should people be encouraged to believe that these are investments if they have no underlying value?" He said.

"If Bitcoin's price can easily halve within six months, as was the case recently and some other speculative crypto tokens went to zero?" He added.

Randell said that he was against incorporating crypto companies in the compensation system for financial services, which would mean that the money pot, which was collected by regulated financial companies, would be available to compensate their customers. The financial service industry as a whole should not "be exposed to the costs of the failure of crypto companies," he noted.

The FCA chairman, who had previously talked about the need to control advertising for crypto, came back to the topic of support from personalities in the entertainment industry.

"With such different celebrities as Kim Kardashian and Larry David, who are willing to take money to promote speculative crypto, how can we slow down the enthusiasm of the people to do something that could seriously damage their financial life?" he said.