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Is Brexit driving crypto regulation?
Is Brexit driving crypto regulation?
Regulation

Is Brexit driving crypto regulation?

By Rayne Davis - 23 Feb 2020

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Brexit might drive crypto regulation. In fact, the Financial Conduct Authority listed a job vacancy for an Intelligence Associate to support the agency in its work on crypto activities. This is the first job of its kind to be listed, and could indicate that proper crypto regulation is finally on its way to the UK. 

Brexit 

So Brexit is finally here. As of February 1st, 2020, the UK has left the European Union and potentially changed the course of history forever. Boris Johnson actually made good on his promise, and nearly 4 years after the initial referendum, the UK has cut its umbilical cord that connected it to the continent. 

Whether you voted leave or stay, it’s impossible to deny the implications of this move – for every aspect of British society, including digital assets. 

 

Current crypto regulation 

This job posting is the first of its kind for the FCA, showing that the government may finally be looking at tightening up regulation for Bitcoin and other cryptocurrencies. Current laws are pretty much in the grey area – the FCA published some guidance notes for investors in 2019, but argued that digital assets didn’t fall under their jurisdiction. 

Now, everything seems set to change. In the lead up to Brexit, dozens of crypto businesses had been pressuring Whitehall to deliver proper cryptocurrency regulation, that would ensure their compliance and protection. 

Now that we’re seeing the FCA creating a crypto role in its Enforcement division, it would seem as though those pleas are finally being taken seriously. 

Some of the requirements for the ideal candidate are: 

  • Undertaking the delivery of intelligence support and advice to Authorisations, Supervision and Enforcement for the processing of applications connected with identified high risk factors.
  • Researching, preparing and disseminating intelligence material (including reports and other products) to inform Authorisations and Supervisory action.
  • Working with partner agencies to identify, liaison and share intelligence, where necessary and relevant, to inform FCA decision-makers. 

The response 

While the response to this move has largely been positive, it has also received some criticism for not coming sooner. 

London-based crypto expert Jon Walsh noted:

“Whilst it’s encouraging to see the FCA recruiting for this role, we had first heard that this job vacancy might be available last summer, and in that time alone we have seen multiple crypto scams come and go and investor losses from the UK alone being in the millions of pounds range,”

“We need swift regulatory enforcement around illegal and fraudulent firms and offerings now more than ever. Without cleaning our house, trust in this still-nascent technology will continue to be on the floor and mainstream adoption ever further away.”

So, is Brexit driving crypto regulation? Quite possibly. It shouldn’t go unmentioned that this move comes only a week after the UK left the European Union. The UK will need to step up its regulatory game, as crypto users in the UK put pressure on the government to expand its crypto horizons.  

 

Crypto and Brexit 

So, is Brexit driving crypto regulation? It certainly seems so. The FCA posted the job just one week after Brexit occurred, which can’t be a coincidence. As digital assets grow in popularity, the UK government will have to step up their willingness to engage with the cryptocurrency community. 

Also, according to some traders, Brexit can also be an important opportunity for investments.

This is only the first move to implementing proper regulation, that will allow digital assets to thrive out in the open in the United Kingdom. 

 

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