As the push for pro-crypto innovation intensifies, particularly in light of the United States’ regulatory advancements under President Donald Trump, the UK’s Financial Conduct Authority (FCA) is considering new proposals that may exempt crypto firms from certain integrity rules designed to protect consumers.
These principles mandate that firms operate with integrity, exercise skill and diligence, prioritize customer interests, and ensure that the advice and discretionary decisions provided to customers are appropriate.
While acknowledging that these proposals will not eliminate the potential risks associated with cryptocurrency investments, Geale noted they would help firms establish common standards, offering consumers clearer expectations.
The FCA is also seeking feedback on whether the consumer duty—which mandates that firms prioritize their customers—should apply to digital asset firms. Additionally, discussions are underway regarding customer access to the Financial Ombudsman Service for potential compensation.
Interestingly, digital asset adoption among the British public is on the rise, with recent government statistics indicating that approximately 12% of adults own or have owned currencies such as Bitcoin (BTC) or Ethereum (ETH), a significant increase from just 4% in 2021.
The meeting included representatives from major digital asset companies like Coinbase (COIN), Circle (CRCL), and Ripple, as well as US banking institutions such as Citigroup and Bank of America.
The urgency of these discussions was prompted by a letter from crypto industry groups urging the UK government to prioritize digital assets and blockchain in any new trade arrangements with the US.
Featured image from DALL-E, chart from TradingView.com
