International Crypto Rules Are Required To ‘Keep Markets Clean’: UK Watchdog
International crypto companies like Binance must be governed by global laws in order to “keep markets clean,” according to a statement made on Thursday by the British Financial Conduct Authority.
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Global regulations are required, according to Britain’s Financial Conduct Authority, to control international cryptocurrency companies like Binance and “keep markets clean.”
While crypto companies are mostly unregulated globally, several nations want them to demonstrate that they have proper safeguards in place to prevent money laundering.
The largest cryptocurrency exchange in the world, Binance, was prohibited from engaging in any regulated activity in Britain, according to the FCA, because it “could not be effectively overseen.”
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Regulators in Italy, France, and Spain have all given Binance permission to operate in their respective domestic markets this year.
When asked if regulators are being pitted against one another by crypto businesses, FCA Chief Executive Nikhil Rathi said, “I think some global baseline rules are vital.” He was speaking at the Peterson Institute for International Economics in Washington.
“As we have seen in other sectors like anti-money laundering, these are inherently cross-border activities by some very well organised actors and therefore having good common regulatory standards and information sharing cross-border is fundamental to the clean markets that we all want,” Rathi said.
After rejecting applications from numerous companies, the regulator encountered opposition in the cryptocurrency industry.
“When it comes to crypto, we are always going to be hawkish around consumer protection,” Rathi said.
Rathi stated that the recent decline in the value of bitcoin has sadly confirmed the FCA’s previous warning that holders of crypto currencies run the risk of losing all of their money.
An international regulatory agency, the Financial Stability Board, announced this week that it planned to provide draught regulatory proposals for cryptocurrencies to the G20 governments in October.
The markets regulator in France was encouraged to reevaluate its choice to register Binance last month by a French member of the European Parliament.