A naukri.com initiative
Bravenewcoin
3d
179
Image Credit: Bravenewcoin
UK’s FCA Will Force Crypto Firms to Protect Your Money or Face the Axe
- The UK's Financial Conduct Authority (FCA) is proposing regulations to protect client assets in cryptocurrency custody services.
- The regulations include trust structures, asset segregation, capital requirements, and daily reconciliations to safeguard client assets.
- Firms must segregate client crypto assets, hold them in a trust, and maintain accurate records under the proposed regulations.
- Stablecoin issuers will face robust backing requirements and offer redemption guarantees to all holders.
- Consumer protections in the UK are limited, with regulatory framework addressing instances of consumer harm and custody failures.
- The proposal aims to improve consumer protection in the growing cryptocurrency market in the UK.
- The consultation period for the proposed regulations runs until July 31, 2025, with final rules expected to be implemented in 2026.
- Compliance costs for firms providing custody services are estimated but expected consumer benefits over 10 years are projected.
- The regulatory framework may alter the UK's digital asset landscape by emphasizing authorization for stablecoin issuers and custodians.
- The FCA's proposals position the UK as a potential leader in cryptocurrency consumer protection while allowing room for innovation in the sector.
Read Full Article
10 Likes
For uninterrupted reading, download the app