Developments In The Regulation Of Crypto Assets - If Not The Financial Conduct Authority Then Who?

A recent report from the House of Commons Treasury Committee, 'Regulating Crypto', highlights ongoing concerns about the lack of regulation of cryptoassets in the UK and the significant risks for consumers resulting from price volatility and exposure to losses. The Treasury Committee considers the cryptoasset industry remains a "wild west" and has called on the Government to expedite regulation, proposing that retail trading and investment in cryptoassets be treated as gambling rather than a financial service.

Whilst the report criticises the Government's inaction and a perceived piecemeal approach to regulation, it recognises that the Financial Conduct Authority ("FCA") faces challenges in implementing existing and proposed crypto regulations. It also stresses the importance of keeping pace with cryptoasset developments, including "by ensuring that the FCA's authorisations gateway is open and effective, so that potential productive innovation in financial services