RCA Reports Contra FCA’s Crypto Ban May Split UK Officials

Crypto Turns Green as UK Rumored to Raise Interest Rates
  • The RPC opposed the FCA’s crypto ban.
  • UK policymakers are divided on whether crypto should be forbidden for retail investors.
  • RPC assigns the prohibition a red level

The Regulatory Policy Committee (RPC), a government advisory body sponsored by the Department of Business, Energy, and Industrial Strategy, outlined their opposition to the FCA’s ban on cryptocurrencies.

Therefore, policymakers in the United Kingdom are divided over whether the sale, marketing, and distribution of cryptocurrency-related derivatives and exchange-traded notes (ETNs) should be forbidden for retail investors. The Regulatory Policy Committee considers the 2021-enacted measure to be unjustified in the current conditions.

In addition, using a cost-benefit analysis, the RPC estimated that the action would result in yearly losses of around 268.5 million British pounds ($333 million).

According to the RPC, the FCA did not adequately describe what would occur in the absence of the restriction. In addition, it did not describe the methods and calculations used to assess the costs and benefits at the time. Accordingly, the RPC assigns the prohibition a red level, indicating that it is ineffective.

The RPC’s negative judgment does not necessarily result in the immediate repeal of legislation. 

In other events, a lawyer for the bankrupt Genesis Global Capital stated that the cryptocurrency lender was cautiously confident that it may settle its disputes with creditors this week and exit from Chapter 11 by the end of May. The insolvent business is currently seeking a mediator or other creditor solution.

Genesis and two lending divisions filed for bankruptcy protection on January 19, two months after halting client withdrawals in response to the collapse of Sam Bankman-FTX Fried’s exchange.

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