The incoming head of UK FCA has issued a violent broadside against the wider crypto industry. Potentially setting the stage for a showdown between the UK financial authorities, the UK government and UK-based crypto companies.
In his interview before the Treasury Select Committee, Ashley Alder said that he has found crypto platforms to be “deliberately elusive.” Large firms within the sector are involved in widespread money laundering, he claimed. Alder said that cryptocurrency businesses in the UK will encounter challenges as the FCA assumed additional regulatory responsibilities.
Alder could now find himself at odds with the British government and Rishi Sunak, the country’s new prime minister. The young leader has made it clear that he is committed to turning the UK into a cutting-edge crypto center. Sunak was cited as stating the following in a statement at the time: Sunak, the nation’s finance minister, was a fervent advocate for cryptocurrencies and CBDCs. He and City Minister John Glen released a wide-ranging plan to put the UK at the forefront of crypto regulation.
Alder refused to elaborate on whether he was on a collision course with the UK government.
UK FCA Claims Crypto Platforms Facilitate Money Laundering
On December 14, incoming FCA chair Ashley Alder spoke to lawmakers, accusing cryptocurrency platforms of being deliberately evasive, facilitating large-scale money laundering, and producing massively unfavorable risk.
The broad generalization occurs as the banking regulator takes on more authority over the UK’s cryptocurrency sector. Alder reportedly told the Financial Times that it would be difficult for cryptocurrency businesses to function in Britain.
The UK, along with a number of prominent politicians, still hopes to develop into a regional crypto centre. If given the chance, the FCA would prefer a carefully regulated and constrained framework for crypto assets.
He continued by claiming that cryptocurrency companies were bundling a whole range of businesses which are traditionally isolated, increasing risks. Tech companies have fled to friendlier countries in Europe as a result of the FCA’s highly lax operating license policy, which rejects 80% of the applications.