Crypto Regulatory Failures: FCA’s Slow Enforcement And Staffing Woes Draw Criticism

Share This Post

The UK’s Financial Conduct Authority (FCA) is facing criticism from the country’s National Audit Office (NAO) for its sluggish approach to enforcing crypto laws and a shortage of staff with expertise in cryptocurrencies. 

In a recent report published by the NAO, an independent entity responsible for scrutinizing public spending, it highlighted the potential impact of crypto-assets as an area of uncertainty that could hinder the FCA’s regulatory effectiveness.

While the FCA mandated compliance with anti-money laundering regulations for digital asset firms in January 2020 and began engaging with unregistered firms, it did not initiate enforcement actions against illegal operators of crypto ATMs until February 2023. The report raises concerns about the FCA’s ability to address risks effectively within the crypto sector.

New Hires And Focus On Crypto Expertise

As reported, the FCA has been implementing significant changes in its data management practices to identify risks more efficiently. However, the report indicates that these efforts are expected to take years, with identified data risks not anticipated to be mitigated before 2025. 

Furthermore, staff turnover, including at senior levels, has been a persistent issue for the FCA in recent years. Although turnover rates have decreased, specialist areas still face delivery risks due to high turnover. The report further states:

The FCA has experienced high staff turnover, including at senior levels, in recent years. While turnover for the FCA as a whole has now fallen, delivery risks remain high in some specialist areas.

To address this, the FCA has recruited and trained over 2,000 new staff members, including seven out of 11 senior officials who joined since September 2020. The FCA recognizes the importance of maintaining specialist skills and expertise, as a shortage of crypto-savvy staff contributed to delays in registering crypto-asset firms under money laundering regulations.

Significant Crackdown On Illicit Crypto Activity 

In addition, the FCA is actively enhancing its international engagement efforts to manage its influence on global developments strategically. 

Recognizing the significance of international collaboration, the FCA has established a new international steering committee to provide cross-organizational oversight and support. The report notes that the FCA collaborates with other organizations to address common issues across various sectors, including the digital economy and financial services.

Ultimately, the FCA has reportedly been in charge of over 1,400 illegal digital asset activity cases between January 2020 and June 2023. It also received over 13,350 scam reports between 2020 and the first half of 2022 while supervising 50,000 firms across the UK. 


The global cryptocurrency market continues its remarkable growth trajectory as it currently stands at a staggering market cap of $1.59 trillion, according to data from CoinGecko. 

This represents a 3% change in the last 24 hours and an impressive 90.23% change compared to the market cap recorded one year ago.

Featured image from Shutterstock, chart from 

Read Entire Article

Related Posts

The Bitcoin “Big Money Algos” Are Here: Will BTC Breach $70,000?

Mike Alfred, a Bitcoin investor and crypto commentator, thinks the “big money algos” are back and predicts the world’s most valuable cryptocurrency will rally to record fresh

Ethereum Taps $3,000 Barrier Amid ETF Speculation and Upcoming Dencun Upgrade

The value of ethereum, the crypto market’s second-largest asset by market cap, eclipsed the $3,000 milestone on Tuesday, peaking at $3,014 per unit in the morning trading hours Over the last

Solana, Chainlink Among Coins With Overheating Open Interest: Data

Data shows Solana and Chainlink are among the top cryptocurrencies that have observed growth in Open Interest to relatively high levels Solana & Chainlink Have Their Open Interest At Notable

Ripple Vs. SEC Legal Dispute: Expert Speculates On April Conclusion

The ongoing legal battle between San Fransisco-based payment firm Ripple Labs Inc and the United States Securities and Exchange Commission (SEC) is presently in the limelight as today marks the

Gaunt photos of FTX founder Sam Bankman-Fried in prison emerge online

The first photos of Sam Bankman-Fried, the convicted founder of the bankrupt FTX exchange, at New York’s Metropolitan Detention Centre, have emerged online from crypto influencer Tiffany Fong

Ethereum Receives Nod Of Approval From Berstein: ETH Price Will Reach $10,000

Global asset management firm, Bernstein has expressed confidence, foreseeing a fairly strong chance of the United States Securities and Exchange Commission (SEC) approving an Ethereum Spot ETF  
- Advertisement -spot_img