The UK's Financial Conduct Authority (FCA) has defended its strict regulation of the cryptocurrency sector.
In a post published Oct. 21 on its website, Val Smith, head of payments and digital assets in the FCA's authorization division, stressed the importance of maintaining stringent rules to protect consumers and maintain the integrity of financial markets.
Smith argued that relaxing regulation and creating a competitive environment could undermine the agency's efforts to safeguard people and markets.
He also warned of the risks associated with innovative technologies built on unreliable and unregulated foundations.
While some have expressed concern that the FCA's strict registration process for crypto firms could hinder the UK's goal of becoming a global financial leader, Smith defended its approach as necessary for long-term success.