BTC-Newswire

UK FCA crypto skills gap is causing slow enforcement, says National Audit Office

Press Releases Crypto News Cointelegraph UK FCA crypto skills gap is causing slow enforcement, says National Audit Office

The National Audit Office (NAO) in the United Kingdom has raised concerns about the effectiveness of the Financial Conduct Authority (FCA) in regulating the cryptocurrency industry.

In a recent report titled “Financial services regulation: adapting to change,” the NAO has claimed that the FCA is being slow to respond and take action against illicit activities in the crypto industry.

High staff turnover rates and a lack of specialist skills increase risk to @TheFCA‘s key commitments.

It has responded by recruiting and spending £317m on its change programme.

This should help it prepare financial services for the future.

More: https://t.co/U66ep8J8Sp pic.twitter.com/GtG5TAjl4t

— National Audit Office (@NAOorguk) December 8, 2023

The NAO highlighted that it took the FCA almost three years to take action against illegal operators of crypto ATMs. On July 11, Cointelegraph reported that the FCA had shut down 26 crypto ATMs as part of a coordinated investigation. Meanwhile, the NAO stated:

“While the FCA has required crypto-asset firms to comply with anti-money laundering regulations since January 2020, and began supervision work including engaging with unregistered firms, it did not begin taking enforcement action against illegal operators of crypto ATMs until February 2023.”

The NAO claims that the delay in registering crypto firms seeking regulatory approval from the FCA was attributed to the absence of specialized crypto personnel.

“For example, a shortage of crypto skills meant the FCA took longer than planned to register crypto-asset firms under money laundering regulations,” the report state.

On Jan.27, Cointelegraph reported that the FCA approved only Go to Source to See Full Article
Author: Ciaran Lyons

Did you like this?
Tip BTC Newswire with Cryptocurrency