FCA (Financial Conduct Authority)
The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom. It was created by the Financial Services Act 2012 and came into full operation on 1 April 2013. The FCA regulates over 56,000 firms which provide services to consumers or operate in wholesale markets such as stocks, bonds and derivatives trading. Its aim is to protect consumers, ensure market integrity and promote competition within regulated industries; it also works closely with other regulatory bodies across Europe.
With cryptocurrency becoming increasingly popular around the world, the FCA has recently become involved in regulating crypto-related activities including initial coin offerings (ICOs), token sales and distributed ledger technology initiatives like blockchain projects. In 2018 they released a statement outlining their approach to cryptocurrencies: “Consumers should be aware of the risks associated with digital currencies — from volatility due to speculation about future prices of tokens to cyber crime” . As part of this strategy for regulation they have established an Innovation Hub that provides assistance for businesses engaging in innovative activity related to fintech products or services involving blockchain technologies such as smart contracts or distributed ledgers. The hub also aims at providing guidance on how existing regulations apply when using new innovations like these ones mentioned above as well as advice regarding any new rules that may need introducing based on emerging trends seen within different sectors dealing with cryptocurrency adoption – notably finance but also energy, healthcare etc..
In summary then ,the role played by the FCA can be broken down into three main areas : protecting consumer interests; ensuring compliance by those operating within regulated industries ; promoting innovation through its Innovation Hub so that companies large & small are able assist customers safely whilst delivering cutting edge solutions utilising modern techs available today – namely Blockchain & Cryptocurrency !
