A top UK finance watchdog said today that it has no immediate plans to alter its regulatory approach in light of blockchain adoption.
By way of a new discussion paper, the Financial Conduct Authority (FCA) is seeking comments from industry stakeholders and observers in order to "explore where the balance of risk and opportunities may lie in relation to [distributed ledger technology]".
The agency – which operates a so-called regulatory “sandbox” that includes a number of companies working with the tech – said in the paper:
Elsewhere in the paper, the FCA said that it wanted to adopt a "neutral" stance in regards to the technology, looking to police the companies that utilize it instead. Early last year, an FCA official said that the agency wanted to give the ecosystem of developers and companies working with blockchain "space," citing the early stages of development.
That said, it’s not out of the question that the FCA could look to rework is approach to regulating the market in light of future potential adoption. This work, too, could be impacted by international regulatory work being conducted between the FCA and other organizations of its kind.
The full discussion paper can be found below:
Image via Shutterstock
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.