UK FCA to Ease Some Crypto Regulations While Tightening Others

The UK Financial Conduct Authority (FCA) is preparing to relax certain rules for cryptocurrency firms while strengthening oversight in areas like cybersecurity. This tailored approach acknowledges cryptoassets' distinct characteristics, diverging from traditional finance frameworks.

David Geale, FCA's payments and digital finance chief, emphasized the need for customized regulation. "You have to recognize that some of these things are very different," he stated, rejecting a one-size-fits-all application of existing financial rules.

The proposed changes include modified requirements for senior management oversight and operational controls, reflecting crypto's lower systemic risk profile compared to banks. Notably, crypto firms won't need to provide cooling-off periods - a concession to market volatility.