The UK Financial Conduct Authority (FCA) has defended its approach to regulating the crypto industry, responding to criticism that its measures are “too harsh” and could stifle innovation.

Val Smith, head of payments and digital assets at the FCA’s regulatory division, stressed the importance of protecting consumers and ensuring the integrity of financial markets. “Relaxing our standards and entering a race to the bottom will not protect people or our markets,” Smith said.

Smith said the FCA’s high standards are essential for long-term success. However, the local crypto community argues that the regulatory process is “discouraging” the industry.

Do you think the FCA’s approach is right for the crypto industry? We welcome your comments.