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Is that a beginning of the brave new world then?

CFA Institute and CFA UK Respond to UK FCA Consultation on Regulating Cryptoasset Activities. Read more here

1. Support for FCA's Approach
   CFA Institute and CFA UK welcomed the FCA's pragmatic and timely efforts to bring cryptoassets under the existing UK regulatory framework. They see this as a vital move toward clarity and accountability in a fast-evolving space.

2. Consumer Protection First
   They strongly support extending the Consumer Duty and access to the Financial Ombudsman Service to cryptoasset activities-ensuring consumers get protections similar to those in traditional finance.

3. Transparency & Disclosure
   The response advocates for bespoke disclosure requirements tailored to cryptoassets, helping investors better understand risks and products.

4. Balanced Regulation
   They recommend a measured and proportionate application of existing rules like Conduct of Business and Product Governance, aiming to protect investors without stifling innovation.

5. Outcomes-Based Framework
   The overall goal is a holistic, outcomes-focused regulatory model that builds trust, strengthens market integrity, and supports responsible growth in digital finance.

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Hi Aya, thank you very much for posting the CFA Institute and CFA UK's response to the FCA's consultation on regulating crypto & digital assets. I am extremely interested in this development. I was reminded earlier this week of the biologist Edward O. Wilson's quote, "We have created a Star Wars civilization, with Stone Age emotions, medieval institutions and godlike technology." Certainly with crypto & digital assets, we have the challenge of getting mechanisms that are fundamentally trustless co-exist with institutions with medieval/Renaissance Italian bones and rooted in trust. Let's face it, we now have a significant set of people who have decided they want to interact with each other a certain way created by technology. So where are we? In the framework of the four stages of negotiation (preparation, opening, bargaining, and closing), we are at step 2, the opening, where the "other side" has been recognised as a counterparty and now the floor is open for advocates for each side to state their position and exchange information. FCA's solicitation signals constructive intents. The CFA Institute and CFA UK's consultation response letter/paper is thoughtful and guides towards normalising crypto & digital assets within the existing regulation but recognises inherent differences (e.g., thanks to decentralisation). Getting to step 3, bargaining, will require alignment with other UK bodies, hope this happens soon.