FCA is Still Not a Fan of Cryptocurrencies Following Recent Comments

Regulatory agencies in various parts of the world continue to struggle to regulate the cryptocurrency space. However, that hasn’t stopped Bitcoin and other cryptocurrencies from growing and gain mainstream adoption.

Crypto Investors Shouldn’t Receive Compensation for Losses

Nikhil Rathi, the CEO of the Financial Conduct Authority, the United Kingdom’s leading financial regulator, has suggested that cryptocurrency investors shouldn’t be compensated for losses from their crypto investments.

The FCA executive stated that cryptocurrencies had been used in criminal activities, and investors must be ready to lose their money. This latest comment doesn’t come as a surprise as FCA has not been a fan of cryptocurrencies.

In recent months, the FCA has published numerous articles suggesting that UK citizens should stay away from cryptocurrency investments due to the risks involved. However, those warnings haven’t been heeded as the UK remains one of the leading cryptocurrency countries in the world in terms of adoption.

In his proposal to the Treasury Committee, Rathi said the Financial Services Compensation Scheme (FSCS) should no longer reimburse those who have lost money dealing with cryptocurrencies. He said, “I would suggest we simply say that anything crypto-related should not be entitled to compensation, that consumers are clear about that when they are investing.”

Crypto Adoption in the UK Continues to Increase

According to Rathi, the FCA has seen an increase in applications from crypto exchanges willing to get regulatory approvals in the last several months. However, he added that most of them were below par, and the regulatory agency hasn’t approved them.

The FCA banned Binance Markets Limited from operating in the UK earlier this year, resulting in banks such as Santander and Barclays blocking Binance transactions. However, Binance recently revealed that it is seeking regulatory approval in the UK.

Binance CEO Changpeng Zhao said the exchange had hired some ex-regulatory staff in the United Kingdom who are familiar with the terrain and will help in its bid to get an FCA license. The crypto exchange has also hired several compliance people as it seeks to meet regulatory standards in the country