CoinVoice has recently learned that according to Finance Magnates, the UK Financial Conduct Authority (FCA) defended its "overly strict" approach to cryptocurrency company registration, saying that strong standards are essential to building a sustainable and trustworthy digital asset industry.

In a statement released today, Val Smith, director of payments and digital assets at the FCA’s authorization division, responded to criticism that the regulator’s strict requirements could stifle innovation in the crypto industry and that the registration threshold is “too high.” Smith warned: “Innovation built quickly on an unsafe, unregulated and untrusted foundation is like a house built on sand – it is likely to collapse. Instead, we want to work closely with governments, industry and partners in other jurisdictions to develop a crypto industry built on reliable, solid foundations.”

The FCA has come under scrutiny for the relatively small number of cryptocurrency firms registered under the UK's Money Laundering Regulations (MLR). Some industry observers have argued that the regulator's standards may be too high and could jeopardize the UK's position as a global financial leader. Smith refuted those claims, stressing that the Financial Conduct Authority never rejects applications outright and takes financial crime risks seriously. She cited concerns about terrorism, organized crime, sanctions evasion and human trafficking. [Original link]