UK REGULATORS ARE PREPARING A “COMPREHENSIVE RESPONSE” TO THE ILLEGAL USE OF CRYPTOCURRENCIES IN THE COUNTRY

Christopher Woolard, Director General for strategy and competition at the United Kingdom Financial conduct authority (FCA), said the UK regulators plan to prepare a “comprehensive response” to the illegal use of cryptocurrencies in local businesses and among consumers.

Speaking at a conference on cryptocurrency regulation in London, Christopher Woolard said that the regulator plans to take tough measures to break the illegal use of cryptocurrencies in the country.

In response to the sharp increase in the adoption of digital assets in recent years, Woolard said that the FCA seeks to establish direct cooperation with Her Majesty’s Treasury (HMT) and the Bank of England, to study the impact of cryptocurrencies and distributed ledger technology on consumers, the integrity and stability of the market, as well as to study the risks of increasing the financial crimes number due to the increased cryptocurrencies prevalence.

Woolard said that HMT plans to take action against the use of cryptocurrency in financial illegal activities.

According to him, to combat financial crimes, the Treasury “will give the industry one of the most comprehensive responses to the use of cryptocurrencies in illegal activities.”

Despite the announcement of tougher regulatory measures against the illegal use of cryptocurrencies, Woolard said that he still does not consider cryptocurrencies as a threat to financial stability, but stressed the need to remain vigilant on the part of regulators and financial institutions. The FCA official also expressed hope that the popularity of cryptocurrencies in Britain will keep growing.

In September, the Financial Committee of the UK Parliament published the “final report on crypto assets”, which considered various aspects of the cryptocurrency market and described possible ways to regulate the industry.