With all the hoopla abut crypto, one regulator has taken a slow and methodical approach to the new asset class and one exec thinks highly of it.
The Financial Conduct Authority (FCA) cryptocurrency review will be one of the most impactful regulatory reviews in modern times and will shape the burgeoning crypto market for years to come, said Nigel Green, founder and CEO of deVere Group. He added that the FCAs proactive and cautious approach must be welcomed.
The FCA plans to publish its review of cryptocurrencies in the third quarter this year.
The highly anticipated FCA cryptocurrency review is set to be one of the most impactful and far-reaching regulatory reviews in modern times for two key reasons. First, because of the sheer numbers of people it will directly affect, Green said. Theres been incredible growth of the cryptocurrency market in recent years. This growth can be expected to soar further and quicker over the next decade as more and more investors pile into the likes of Bitcoin, Ethereum, Ripple, Litecoin and Dash, and as adoption by businesses and organizations further increases.
And second, he added, was because the FCA is one of the worlds most influential and respected financial regulators. As such, it can be expected to help shape and define the thinking and policies of regulators globally, the majority of which in the major economies are now also carefully looking at the crypto space.
In our increasingly tech-driven, digital age, cryptocurrencies are here to stay; they simply can no longer be ignored. Therefore, the FCAs proactive approach towards the crypto market must be welcomed as it will help protect investors and tackle illicit activity and unscrupulous firms, Green said. I expect the regulator to issue warnings and this caution should also be championed as these digital assets remain highly speculative and the market relatively new. The FCA cryptocurrency review will fundamentally shape this market that now, thanks to its exponential growth, needs a robust regulatory framework.