Binu Paul, the head of digital assets for the U.K.’s Financial Conduct Authority (FCA), has bid the organization goodbye less than a year after being appointed. Paul initially worked as a fintech specialist lead at the Financial Markets Authority in New Zealand.
Last year in October, he was appointed to join the UK FCA, whereby he took over from Victoria McLoughlin as the head of digital assets. As the head, he led the FCA regulatory activities in the crypto industry firms involved in frauds and scams.
Despite the regulator’s notable criticism of crypto, it is looking for a better-balanced approach to the government to make the country a crypto innovation hub.
FCA’s crypto regulation efforts
Paul’s departure comes amid U.K.’s efforts to be the world’s web3 center. Andreessen Horowitz’s (A16z), a venture investment firm, recently set up an international outpost in London. The firm has been a top contributor in the crypto industry. In a blog post, a16z general partner Chris Dixon noted that the firm has been working with regulators worldwide, and during their discussions, it has become clear that the U.K. government “sees the promise of Web3.”
According to the U.K. Prime Minister Rishi Sunak is keen on establishing regulatory clarity regarding the region’s operation and registration of crypto firms. He added the need to embrace innovations like web3 to allow start-ups to flourish and develop the economy.
The U.K. has also been at the forefront of digital asset regulation. A UK bill on stablecoin and crypto regulation and promotion supervision was recently approved by the second chamber of the House of Parliament, the House of Lords. In addition, it is expected to pass the Financial Services and Market bill, which has crypto assets provisions. So far, the House of Commons has approved the bill and is only awaiting the Consideration of Amendments and Royal Assent stages.
The regulator maintains a register for crypto asset firms whereby the registration process complies with anti-money laundering laws. On June 19, Binance announced that its U.K. subsidiary, Binance Markets Limited (BML), had withdrawn its FCA registration. According to the Binance spokesperson, it was unlikely that the permissions would be needed in the future. Hence, the decision to cancel them aligned with FCA’s recommendations to keep them updated. Earlier in 2021, the FCA had issued Binance a warning that they were prohibited from business operations in the U.K.
The regulator has also been running programs to bring innovation within its regulatory framework. One of these is the sandbox program which enables companies to test innovative ideas with customers and gives the creators an innovation pathways service that allows them to understand the FCA regulation.
FCA changes in recent months
The UK FCA Executive Director of Enforcement and Market Oversight, Mark Steward, resigned from the position in October last year after leading for seven years. He was responsible for significant enforcement cases and leading ‘Scamsmart,’ an anti-financial fraud marketing campaign. Before his departure, the regulator appointed Ashley Alder as the new FCA chair after stepping down from his Hong Kong SFC Chairman role. In August, the FCA appointed Ruairi O’Connell as Director of International to help shape the institution’s international development strategy.
Meanwhile, the FCA came about at the start of 2020 as U.K.’s authority for money laundering and establishing counter-terrorism measures. Crypto firms in the U.K. must register with the FCA to serve U.K. customers. The FCA will gain more powers in crypto regulation by passing the Financial Service and Markets bill.
