UK Watchdog Boosts Crypto Division to 100 Staff Members
The UK’s financial watchdog has bolstered its workforce dedicated to crypto, increasing the number of staff to 100. This expansion comes as the Financial Conduct Authority (FCA) grapples with new regulatory issues in the digital asset market.
These members are dispersed across six teams specifically focused on the sector, Financial News reported Thursday, citing data obtained through a Freedom of Information Act request.
The FCA has been overseeing money laundering and terrorist financing checks in the UK crypto sector since 2020. Its role has grown steadily, and now crypto firms offering exchange services or custody wallets need FCA registration to operate. Due to recent legislative changes, it also oversees crypto financial promotions.
The government is also working to give the FCA complete control over regulating cryptoassets in the UK.
UK Watchdog Expands Team for Crypto Licensing, Policy
Most of the FCA’s crypto staff is focused on approving licenses for firms and monitoring them afterwards, the outlet reported. However, the division saw the biggest staffing jump in its policy department last year. This reflects the ongoing collaboration between the FCA and the government as they work on creating a more thorough set of crypto regulations for the UK.
The FCA has reportedly stated that its staff may work on crypto projects alongside other sectors within teams that have broader responsibilities. Additionally, it is already preparing for future regulations in areas like stablecoins.
An FCA spokesperson told Cryptonews that the agency is “making sure crypto companies have the right protections against financial crime, supporting innovative crypto firms via our Innovation Hub, and working with government and industry to design the future regulatory regime for cryptoassets.”
“Our increased staffing levels reflect our investment in these priorities,” the spokesperson added.
FCA Remains Cautious
In 2023, the FCA threw significant resources at crypto oversight, with nearly a third of its financial crime specialists tasked with crypto businesses. Their stringent review process exposed weaknesses in anti-money laundering controls at many firms, leading to a wave of withdrawn, rejected, or refused applications.
Meanwhile, despite the rising popularity of crypto exchange-traded products, FCA is taking a measured approach to crypto. It is currently restricting access to these ETPs to professional investors, using recognized exchanges, and not allowing retail participation.
