Global cryptocurrencies are needed to keep markets clean, says UK Watchdog

A representation of cryptocurrency is seen in front of the Binance logo in this illustration taken March 4, 2022. REUTERS / Dado Ruvic / Illustration /

LONDON, July 14 (Reuters) – Global rules are needed to regulate international crypto firms such as Binance and “keep markets clean”, the UK Financial Conduct Authority said on Thursday.

Cryptocompanies are largely unregulated over large parts of the world, but are required in many countries to show that they have adequate controls to combat money laundering.

The FCA said last year that Binance, the world’s largest crypto exchange, was not allowed to carry out any regulated activity in the UK because it “was unable to be effectively monitored”.

This year, regulators in Spain, France and Italy have allowed Binance to operate in their national markets.

“I think some global baseline standards are important,” FCA chief Nikhil Rathi told the Peterson Institute for International Economics in Washington in response to a question about whether regulators are being played off by crypto firms.

“As we have seen in other sectors such as anti-money laundering, these are inherently cross-border activities carried out by some very well-organized actors, and therefore it is fundamental to have good common regulatory standards and information sharing across national borders for the pure markets that we all wishes. “, said Rathi.

The regulator has faced setbacks in the crypto sector after rejecting applications from many companies.

“When it comes to crypto, we’ll always be hawkish about consumer protection,” Rathi said.

The FCA has also long warned that investors in cryptocurrencies could lose all their money, and Rathi said that it has unfortunately materialized after the recent crack in the value of bitcoin.

The Financial Stability Board, a global regulatory body, said this week that it was looking at drafting recommendations to G20 countries in October for regulating cryptocurrencies. read more

Last month, a French member of the European Parliament called on France’s market regulator to reconsider its decision to register Binance. read more

Reporting by Huw Jones; edited by Jonathan Oatis

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