Incoming UK’s FCA Chief Calls for Stricter Crypto Laws

As reported initially by the Financial Times, Ashley Alder, the incoming chair of the Financial Conduct Authority in the United Kingdom, has shown a hard liner attitude for crypto platforms when he briefed members of parliament. 

Mr. Alder is the current CEO of the Hong Kong Securities and Futures Commission. 

The 63-year-old is set to take office in January 2023, succeeding Richard Lloyd in the capacity of interim Chair following the departure of Charles Randell in May 2022.

According to the article, Alder said that crypto “should be regulated further” while testifying before a cross party Treasury select committee. He added that cryptocurrency companies “are deliberately evasive”.

Alder’s criticism comes after FCA chief executive Nikhil Rath said earlier this year at a banking summit that 85% of crypto firms that applied for anti-money laundering tests were turned down.

UK Treasury measures are expected to provide consumer protections, limit foreign sales, restrict product advertising, and offer solutions when companies collapse.

Regulators Ticked off by High-Profile Crypto Bankruptcies

With so many high-profile bankruptcies this year, such as Celsius Network, Voyager Digital, and Three Arrows Capital (3AC), and the recent collapse of FTX crypto exchange, regulators around the world have been compelled to tighten the rules. 

Several nations, such as Australia, are tightening the laws to impose on the cryptosphere. South Korean government officials are also proposing amendments to the Digital Assets Bill to give them greater control over cryptocurrency exchanges. 

As reported by TheCoinRise, the changes were “introduced to reflect on the FTX incident and prevent a recurrence.”

In addition, the IMF is pushing for strict crypto regulation in Africa, particularly in countries like Nigeria, which have a sporadic but expanding crypto sector. 

Legal action has recently been taken by the CFTC against SBF, the creator of the defunct cryptocurrency exchange FTX, and Alameda Research, FTX’s sister company. 

The CFTC sued Bankman-Fried after the SEC accused him of scamming FTX investors.