UK FCA to Waive Certain Rules for Crypto Companies: FT Report

The UK's Financial Conduct Authority (FCA) plans to relax certain rules for cryptocurrency companies.
Despite this, the FCA aims to tighten regulations in areas addressing industry-specific risks like cyber attacks.
The FCA intends to tailor existing financial service rules to suit the unique aspects of cryptoassets.
According to David Geale, the FCA's executive director for payments and digital finance, traditional finance rules cannot be directly applied to cryptocurrencies.
Crypto firms will face less stringent requirements than banks concerning senior management and controls due to lower systemic risk.
Requirements such as offering a cooling-off period and classifying technology as an outsourcing arrangement will not apply to crypto firms, owing to the permissionless nature of blockchain technology.
The FCA plans to fully integrate cryptocurrency into its regulatory framework by 2026.