Global regulators have cracked down on cryptocurrency over the past month, and their brutal condemnations are only getting more extreme.
The latest to make one of these absurd claims is incoming FCA chairman Ashley Alder. On Dec. 14, he told politicians that cryptocurrency platforms were “intentionally dodgy,” facilitating large-scale money laundering, and creating “massive upside risks.”
This sweeping circular comes as the financial regulator takes more control of the cryptocurrency industry in the UK. According to the Financial Times, Alder said that crypto firms looking to operate in the UK will face an uphill battle.
Regulatory outrage at the FCA
However, the United Kingdom and a number of prominent politicians still have ambitions to become a regional cryptocurrency hub. The Financial Conduct Authority (FCA), if it gets its way, will favor a strictly regulated and limited crypto-asset environment.
Alder, who currently chairs the Hong Kong Securities and Futures Commission, said cryptocurrencies should be further regulated, adding:
Our experience so far [crypto] The platforms, whether it be FTX or other, is that they are intentionally dodgy, it is a way that large scale money laundering happens. “
He then accused crypto companies of “aggregating a whole bunch of activities that would normally be kept separate from one another,” which raises the stakes.
The FCA has been very lenient with its operating licenses, denying 80% of applications, which has led technology companies to migrate to friendlier jurisdictions in Europe.
In September, Britain’s financial watchdog issued a warning about FTX, claiming it “targets people in the UK” who are unlikely to get their money back in the event of a liquidity crisis.
She added that FTX did not have the correct license to operate in the UK. The then chief executive, Sam Bankman-Fried, said he believed the company was in compliance with UK regulators.
Anti-crypto senator Elizabeth Warren is once again on the warpath. The latest cryptocurrency bill aims to crack down on financial integrity in the US by treating blockchain software as a contract and validators as “financial services companies.”
Crypto market downturn
Cryptocurrency markets are back in the red as another week draws to a close. The total market cap is down by a percentage or so on the day to $886 billion at the time of writing.
The consolidation has continued since the FTX crash in early November, with analysts predicting a quiet period for Bitcoin and its brethren in the coming months.
UK FCA Claims Crypto Platforms Facilitate Money Laundering appeared first on CryptoPotato.