The Financial Conduct Authority’s (FCA) recently appointed chair has presented an unfriendly attitude toward cryptocurrencies in a cross-party Treasury select committee meeting.
Ashley Alder, who will assume control of the FCA in February 2023, described cryptocurrency-related businesses as ‘deliberately evasive’ and suggested the sector facilitated money laundering during the meeting with Treasury members on Dec. 14.
According to a report from Financial Times, the current chief executive of Hong Kong’s Securities & Futures Commission highlighted his belief that the cryptocurrency ecosystem created risk which called for further regulatory purview from government:
“Our experience to date of [crypto] platforms, whether FTX or others, is that they are deliberately evasive, they are a method by which money laundering happens in size.”
Alder also added that the cryptocurrency sector bundles ‘a whole set of activities which are normally segregated’ which leads to ‘massively untoward risk.'
The incoming FCA chair’s comments are seemingly at odds with the regulatory body’s efforts to provide a fostering environment for the cryptocurrency industry in the United Kingdom.
The institution told earlier this year that’s oversight was largely limited to registering locally-based cryptocurrency exchanges for Anti-Money Laundering (AML) purposes. 41 exchanges are currently listed on the FCA’s registered cryptoasset roster.
The U.K. Treasury is now looking to formulate new regulatory rules for the cryptocurrency industry which could include limits on the amount foreign companies can sell into the country. This has largely been driven by the collapse of FTX in November 2022.
The FCA is also set to be tasked with monitoring operations and advertising of cryptocurrency businesses as part of the proposed regulatory changes.