The UK’s financial watchdog has expanded its crypto-focused workforce to 100 employees. The Financial Conduct Authority (FCA) is currently confronted with novel regulatory challenges in the digital asset market, which has resulted in this expansion.
The Financial News reported on Thursday that these members are dispersed across six teams specifically focused on the sector, citing data obtained through a Freedom of Information Act request.
Since 2020, the FCA has checked the UK crypto sector to prevent money laundering and terrorist financing. Its significance has expanded consistently, and crypto firms that provide custody wallets or exchange services must obtain FCA registration to operate.
The government also grants the FCA full authority to regulate cryptoassets in the United Kingdom.
UK Watchdog Expands Team for Crypto Licensing, Policy
According to the outlet, most of FCA’s crypto personnel approve licenses for firms and their subsequent monitoring. Nevertheless, the police department experienced the most significant personnel increase within the division last year.
This indicates the ongoing partnership between the FCA and the government as they pursue the development of a more comprehensive set of crypto regulations for the United Kingdom.
The FCA has reportedly indicated that its personnel may collaborate on crypto initiatives with other sectors within teams with broader responsibilities. Additionally, it is currently in the process of getting set for future regulations in areas such as stablecoins.
FCA Continues to Exercise Caution
The FCA allocated substantial resources to crypto supervision in 2023, with nearly one-third of its financial crime specialists assigned to crypto businesses.
A wave of withdrawn, rejected, or refused applications resulted from the stringent review process, which exposed vulnerabilities in anti-money laundering controls at many firms.
In the interim, FCA is adopting a cautious stance toward cryptocurrency despite the increasing prevalence of crypto exchange-traded products. It prohibits retail participation and restricts professional investors who utilize recognized exchanges access to these ETPs.
