UK regulator proposes exempting crypto firms from 'integrity' and other rules

Group 1 - The Financial Conduct Authority (FCA) in Britain is proposing to exempt crypto firms from certain rules that ensure integrity and customer interest in financial services [1][2] - The FCA's consultation aims to establish minimum standards for crypto firms to enhance their competitiveness internationally, suggesting waiving four key principles related to business integrity and customer care [2][3] - The FCA emphasizes the need for a sustainable and competitive crypto sector while acknowledging the inherent risks of investing in crypto assets [3][4] Group 2 - The FCA is proposing stricter regulations regarding operational risk, highlighted by a significant $1.5 billion hack of the cryptocurrency exchange Bybit [4] - There is a discussion on whether the consumer duty, which prioritizes customer interests, should apply to crypto asset firms, along with access to the Financial Ombudsman Service for compensation [4][5] - The ownership of cryptocurrencies among British adults has increased to approximately 12% from 4% in 2021, indicating a growing interest in the crypto market [5]