Uk’s Financial Conduct Authority to encourage blockchain businesses

Announcements | August 23, 2016 By:

The UK’s Financial Conduct Authority (FCA) will possibly approve blockchain businesses within the region.

Speaking with Financial Times, the financial watchdog said that a number of groups in its preapproval stage are engaged in the development of blockchain-based consumer-facing and compliance products.

“We do think [blockchain] has got some potentially interesting applications and we are talking to firms thinking about how to apply that to financial services and how it could benefit consumers or indeed make the business of compliance easier. There may be areas where we might want to encourage it a bit,” said Chris Woolard, the FCA’s director of strategy and competition.

The comments come months after the agency indicated its openness toward a light-touch regulatory approach to blockchain startups in the UK. At the time, Woolard said it was “crucial” that regulators give innovators room to create products and services.