Kingdom

Worried

United

when

Fine

Investors in the cryptocurrency sector are expressing concerns about a potential regulatory tightening in the United Kingdom following a recent fine imposed on Coinbase’s UK subsidiary.
The Financial Conduct Authority (FCA) levied a $4.5 million penalty against Coinbase’s UK branch on July 25 for failing to adhere to a voluntary user agreement that aimed to prevent onboarding customers deemed “high risk” by the regulator.
This fine marks a notable development as it represents the first instance of the FCA using enforcement measures under the Electronic Money Regulations 2011 Act. The action has sparked fears among some investors that it might signal increased scrutiny for other cryptocurrency exchanges operating in the UK.
Nonetheless, despite these concerns, legal experts suggest that the fine might not indicate a broader crackdown on the cryptocurrency industry. According to Cointelegraph, Charlotte Tregunna, a partner at the business crime law firm Peters &amp; Peters, described the FCA’s action as a “one-off” incident rather than a sign of a more aggressive regulatory stance.
Tregunna pointed out that the FCA’s decision to fine Coinbase’s UK arm, CB Payments (CBPL), reflects a specific case of non-compliance rather than a general trend. “The FCA has historically used enforcement as a last resort,” she noted. “CBPL had ample time to rectify its systems and failed to do so over three years. The breach was clear, and the FCA had little choice but to act.”
She further explained that it is uncommon for firms to face fines for breaching voluntary requirements. “Typically, when the FCA intervenes, it is after a firm has had the chance to address issues voluntarily. Enforcement is usually a final step.”
It is worth noting that the FCA’s investigation concentrated on Coinbase’s e-money transmission services rather than its cryptocurrency transactions. Despite this fine, the FCA has indicated a desire to foster a supportive environment for cryptocurrency innovation. Tregunna emphasized that the regulator aims to balance support for the sector with ensuring compliance.
“The FCA wants to maintain a crypto-friendly stance while encouraging providers to enhance their standards and compliance frameworks,” Tregunna said. “However, if firms fail to meet these expectations, the FCA may have no choice but to enforce its regulations.”
In summary, while the fine imposed on Coinbase’s UK arm has raised concerns about regulatory trends, experts suggest that it may be an isolated incident rather than a precursor to widespread regulatory changes in the cryptocurrency sector.
The post <a href="https://www.unlock-bc.com/126456/uk-crypto-investors-worried-about-regulatory-crackdown-after-coinbase-4-5m-fine/" rel="noopener noreferrer nofollow">UK Crypto Investors Worried About Regulatory Crackdown After Coinbase $4.5M Fine</a> appeared first on <a href="https://www.unlock-bc.com" rel="noopener noreferrer nofollow">UNLOCK Blockchain</a>.

UK Crypto Investors Worried About Regulatory Crackdown After Coinbase $4.5M Fine

UNLOCK_ENG

Andre artikler publisert på 30. juli 2024

Is Bitcoin Still the Most Commonly Exploited Cryptocurrency by Criminals?

Google analyst warns AI answers ‘not perfect, can’t replace your brain’

The List of Highest Profiting Altcoins Has Been Announced: This Altcoin Surpassed Ethereum and So...

Compound reaches truce with crypto whale Humpy after controversial vote to move $24 million in to...

Ripple CTO Issues Critical AI Tweet

Ethereum Thrives Amidst Surge in Open Interest: Exploring the Driving Forces

Bli med på vårt gratis nyhetsbrev for daglige kryptooppdateringer!