FCA to Add 80 People in Crackdown on 'Problem Firms'

The extra staff will help the U.K. regulator strengthen its efforts to clamp down on companies that fail to meet standards.

AccessTimeIconApr 7, 2022 at 3:33 p.m. UTC
Updated Apr 7, 2022 at 4:02 p.m. UTC

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.

The Financial Conduct Authority said it is adding 80 staff to bolster its efforts to crack down on companies that do not meet regulatory standards as part of a three-year strategy to reduce consumer harm, raise standards and increase competition.

The U.K.'s financial services regulator said closing down companies that fail to meet basic regulatory standards will protect consumers from potential fraud, poor treatment and create a better market.

The U.K. announced on Monday it plans to create a crypto regulatory package and to bring stablecoins into the payments system. In its business plan released Thursday, the FCA said it will contribute to developing the crypto policies and will consider its regime for stablecoins used as payments.

The agency is one of many regulators worldwide with responsibility for crypto companies, and the announcement comes days after the Temporary Registration Regime, which allowed them to operate in the U.K. without full registration, ended. The firms had until April 1 to obtain full registration, though a select few have been permitted to continue with temporary registration.

"This leads to questions being raised about whether these companies will be able to continue operating in the U.K. market, and what happens to consumer crypto assets currently held by consumers with these companies," Emma McInnes, the global head of financial services at research company YouGov, said in an interview, adding:

"We have already seen some companies moving their crypto services operations from the U.K. to other markets to ensure they can continue offering crypto services to Britons but from outside of the new U.K. regulatory regime."

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Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.

CoinDesk - Unknown

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.