The Financial Conduct Authority (FCA) failed to foster cryptocurrency innovation and to work with the industry as the UK has fallen behind over the last two or three years, Blockchain.com CEO, Peter Smith, told The Telegraph. The financial watchdog — according to Smith — had taken a "risk-management first approach" which came "at the expense of innovation."
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The Blockchain CEO noted other regulators in Europe are doing "really interesting" since they have come out with "full regulatory frameworks, licenses that you can apply for."
"As we become a more global company, our footprint grows around the world, and it tends to grow in places where we feel like we can work closely with the regulator. So I think it will probably grow a lot more in Germany than it will in the UK over the next couple of years," he added.
Blockchain.com currently has a "temporary" license to operate an exchange in the UK. This is due to the fact the FCA is very reluctant to extend that, Smith said. However, the watchdog does not seem to share Smith's thought. A spokesperson for the FCA told The Telegraph it encourages crypto companies to test initiatives though the sandbox, where firms have safe environment:
"We are continuing our work registering crypto firms to ensure they are not a conduit for money laundering and recently launched a consultation on how crypto is marketed to consumers."
In summer 2021, Celsius Network, a blockchain-based lending platform, left the United Kingdom over "increased regulatory uncertainty." Celsius said then it hoped the move would provide the community with more "stability, clarity, and development opportunities."
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