UK: FCA takes steps to regulate crypto, lessons for Ghana

The job ad describes the position as a “critical leadership role within a proposed new Directorate dealing with emerging business models in the SPC (Supervision, Policy and Competition) division”.

The successful candidate will “lead a cross-sector crypto strategy to have a single FCA narrative on crypto”, the ad said.

The new department head will be accountable for leading the FCA’s approach to regulatory interventions within the crypto firms in the UK, supervising complex business models of registered firms and dealing with unregistered cryptoasset businesses that may be involved in scams and frauds.

Earlier this month, the regulator revealed that it opened over 300 cases related to crypto firms in a six-month period last year and has 50 live investigations, including criminal probes, into companies in the sector.

The new department head will be expected to build a team capable of developing a data strategy and shaping the FCA’s response to new trends and emerging risks in line with Government policy.

The new position comes on the heels of a job ad posted last week for a director of payments and digital assets, who would lead a directorate of c.125-150 people, comprising several departments. The scope of the role initially includes responsibility for policy and supervision relating to payments, e-money and cryptoassets and any other emerging business models across the financial services industry.

In Ghana, the industry regulator, which is also the central bank has warned industry players against transacting in crypto and also warned the public not to deal with any crypto exchange, as none has been licensed.

Indeed, one of the country’s wealthiest men dropped a loud hint about a cryptocurrency called Freedom Coin, and central bank went on the back of that to repeat its warning against cryptocurrency in the country.

Meanwhile, the central bank has just released a 32-page design paper for its proposed regulated digital currency spelling out all the benefits there is for consumers, banks, fintech, government and merchants.

But some industry players in the country, particularly those within the mobile money/mobile finance sector, which now control a greater chunk of the financial intermediation, are not amused by a signal from the central bank that eCedi is intended to restore the influence of banks and curtail the growth of mobile money.