“Regulating crypto also means deciding how the FCA will raise the money to pay for the very significant costs of this additional regulation, including the question of whether the financial services industry as a whole should be exposed to the costs of failing crypto firms through the Financial Services Compensation Scheme, he said.
“I think it shouldn’t, and that consumers should have to acknowledge that fact before an adviser helps them to buy crypto.”
He added: “To summarise: just like the challenges of financial literacy, digital inclusion and financial crime, a challenge like crypto demands a well-functioning partnership between government, parliament and regulators.
“And it’s critical that within that partnership there are strong safeguards to ensure that all interests – not just the interests of people making money from pushing crypto products, but also the interests of the people whose savings will be put at risk – are heard.”
sonia.rach@ft.com
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