JAKARTA - The UK Financial Services Authority (FCA) on Tuesday 15 November called on lawmakers to show their support for its, unpopular decision not to license a number of crypto exchanges such as FTX, which recently collapsed.
"The FCA is under pressure because 85% of license apps from crypto trading companies have been rejected or withdrawn," said FCA chief supervisory executive Mikhahi, quoted by Reuters.
Crypto exchanges such as today's market leaders, Binance, and FTX, cannot operate in the UK because they do not get FCA approval for their anti-money laundering policy controls.
The FCA is tasked with keeping Britain at a globally competitive financial hub, piling pressure on supervisors to keep its doors open.
"We have handled quite a number of criticisms from people who say we allow these innovative activities to move to other jurisdictions, and that another jurisdiction stole the march," FCA chief executive Mikhahi told a committee at the upper house of parliament, House of Representatives.
"That means sometimes rejecting some of the biggest players in the global market," he said.
FTX obtained a license that is now suspended from the Cyprus regulator. Binance has obtained approval from several EU member state regulators.
But Rahi said he supported the decision to ban such platforms from operating in the UK. "It does require parliamentary support and political support when we make some of those strong decisions," he said.
There is no consumer protection for crypto investment, and the FCA has no information about how much UK consumers have put into an overseas crypto asset platform.
"If they want, they can go around the world and deposit money with credit cards that we don't track, and we don't have the tools to track them down," said Rathi.
Cryptoassets are not regulated in the UK, but new market bills and financial services now approved by parliament are expected to bring cryptoassets marketing under regulations, giving the FCA power to protect consumers.
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