The UK’s public spending watchdog says a lack of “specialist skills” is hindering the Financial Conduct Authority’s ability to regulate the crypto industry. In a tweet published on Sunday (10th December), The National Audit Office (NAO) said the skills gap and high rate of staff turnovers are ongoing issues that the FCA needs to address.
FCA lacks “specialist skills” to regulate crypto says UK watchdog
A report found that around three-quarters of people in senior positions at the FCA have been in their respective roles for less than four years. The lack of experience across senior leadership has contributed to struggles in straightening out crypto regulations and clamping down on illegal crypto-related activities.
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The NAO says the FCA has recognised the need for improvements; £317m has already been spent on a “change” programme designed to overhaul its regulatory efforts. The independent public body is tasked with providing honest and fair markets for both financial companies and consumers; however, the FCA has found the growing diversity of financial assets difficult to balance.
The NAO noted the FCA’s slow respond time and cited a case where it took three years to act action against crypto ATMs that were being run by illegal operators. This was due in part to a dearth of skills. The report noted:
For example, a shortage of crypto skills meant the FCA took longer than planned to register crypto-asset firms under money laundering regulations.
The FCA has made improvements during the last twelve months, and it recently published “finalised non-handbook guidance” to help crypto firms adhere to stricter regulations, which has been a sticking point for regulators in Western countries. The NAO says the change programme should help the FCA to meet its key commitments.
