Charles Randell, Chair of the FCA and PSR has delivered a speech on the risks of regulating crypto tokens. Speech highlights include:
- whilst platforms’ efforts to crack down on fraudulent advertisements are welcome, a permanent and consistent solution to the problem of online fraud from paid-for advertising requires legislation
- speculative crypto tokens are not regulated by the FCA and consumers are not covered or protected by the FSCS in the event of losses
- in considering regulating crypto, legislators need to consider 3 issues:
- how to make it harder for digital tokens to be used for financial crime
- how to support useful innovation
- the extent to which consumers should be free to buy unregulated, purely speculative tokens and to take the responsibility for their decisions to do so