Kingdom

Cryptocurrency

United

Cryptocurrency investors are concerned about a potential regulatory crackdown in the United Kingdom after the UK-based arm of crypto exchange Coinbase was fined.
Investor worries arose on July 25 after <a href="https://cointelegraph.com/news/coinbase-uk-fined-high-risk-customer-onboarding">Coinbase’s UK arm was fined $4.5 million</a> for breaching a voluntary user agreement with the Financial Conduct Authority (FCA) that would prevent it from onboarding customers considered “high risk” by the regulator.
In a particularly concerning sign, the fine marks the first instance the FCA has taken enforcement actions based on the Electronic Money Regulations 2011 Act.
While some investors worry that this could signal more scrutiny for other cryptocurrency exchanges in the region, legal experts don’t see it as a threat to the wider ecosystem. 
Related: <a href="https://cointelegraph.com/news/bitcoin-gold-price-breakout-macroeconomic-improvement">Bitcoin, gold on track to break out as ‘macro summer’ begins — Analyst</a>
<h2 data-ct-non-breakable="true" id="fca-s-fine-was-one-off-enforcement-action-legal-expert">FCA’s fine was “one-off” enforcement action — Legal expert</h2>
FCA’s case against Coinbase’s UK arm, CB Payments (CBPL), suggests a “one-off” enforcement action, not a tougher stance against the crypto space, according to Charlotte Tregunna, partner at business crime law firm Peters &amp; Peters.
The fine doesn’t necessarily suggest more enforcement for crypto platforms, Tregunna told Cointelegraph:
<blockquote data-ct-non-breakable="true">
 “The fact that the FCA hasn’t used its enforcement powers until now suggests that it was using these as a last resort. CPBL had all the time in the world to sort out their systems and controls, and yet they didn’t in three years. It’s an obvious breach and the FCA can’t really ignore it if they were given adequate time to resolve it.”
</blockquote>
She added that receiving fines for breaching voluntary requirements is considered rare:
<blockquote data-ct-non-breakable="true">
 “If the FCA becomes involved, usually firms do everything they can to resolve the situation, particularly where it is a voluntary requirement, for example, if the firm has voluntarily agreed to improve its systems. It usually doesn’t have to get to this stage of enforcement.”
</blockquote>
According to the UK regulator, the FCA’s investigation focused on the firm’s e-money transmission services rather than its crypto asset transactions.
Related: <a href="https://cointelegraph.com/news/bitcoin-open-interest-394b-breakout-imminent">Record $39.4B Bitcoin open interest suggests imminent price breakout</a>
<h3 data-ct-non-breakable="true" id="fca-is-aiming-for-crypto-friendly-approach-but-crypto-platforms-can-t-keep-up-with-compliance">FCA is aiming for crypto-friendly approach, but crypto platforms can’t keep up with compliance</h3>
Despite the recent fine, the FCA is aiming to become a crypto-friendly regulator that doesn’t stifle innovation, according to Tregunna:
<blockquote data-ct-non-breakable="true">
 “The FCA ultimately wants to be seen to be crypto and e-money-friendly, within reason. It will provide opportunities for those providers and issuers to improve their standards and compliance frameworks, but if those opportunities are squandered then the FCA hasn’t really got much of a choice but to enforce.”
</blockquote>
Yet, she noted that part of the issue is the inability of crypto platforms to maintain corporate compliance, which is becoming increasingly difficult in the growing industry.
Tregunna explained:
<blockquote data-ct-non-breakable="true">
 “This is perhaps symptomatic of the fact that corporate governance and compliance culture within e-money issuers and crypto asset service providers has not been able to keep up with the inexorable rise in the use of those services over the last few years.”
</blockquote>
She added that new protocols need to have these governance structures in place before launching or risk playing “catch-up,” as seen with Coinbase’s UK arm.
Magazine: <a href="https://cointelegraph.com/magazine/donald-trump-bitcoin-spot-ether-etf-debut-trading-hodlers-digest-cointelegraph-magazine/">Trump’s Bitcoin push, spot Ether ETF debut, and more: Hodlers Digest, July 21-27</a>

What’s next for UK crypto regulations after Coinbase’s $4.5M fine?

İçindekiler

Cointelegraph

30 Tem 2024 tarihli diğer yazılar

XRP’s Bollinger Bands Tighten to Historic Lows: Is Another 60,000% Rally Imminent?

Bitcoin Miners Lead New Accumulation Phase: Will BTC Price See Reversal?

Rollblock Presale Eyeing 10,000+ Presale Registrations in August; Injective (INJ) and Arbitrum (A...

Hong Kong Police Arrest Four, Including 14-Year-Old, for Counterfeit Crypto Scam

SEC Notifies Binance of Intent to Amend Complaint

Compound Finance Settles Governance Dispute

Güncel kripto para haberleri için ücretsiz bültenimize abone olun!