More than 70 FinTech CEOs have called on regulators and the UK government to speed up the reforms of the Kalifa review for the FinTech sector in an open letter.
Established in the 2020 UK Budget, the Kalifa review looked into how the government could support the FinTech sector to ensure it remains competitive and keeps on growing.
The CEOs who put their comments forward in the open letter include executives from the likes of Monzo, Checkout.com and Encompass Corporation, who are looking to secure better regulation of the UK’s FinTech industry.
According to AltFi, signatories of the letter said the existing regulation of FinTech in the UK needs an overhaul and warned against FinTechs resting on their laurels.
The letter stated, “The regulatory rule book requires further updating, and regulators must have the capability and culture in place to allow them to fully embrace innovation while protecting the consumer and financial stability.
“We should seize on the opportunities afforded to us from leaving the EU to bring in a regulatory and capital requirements regime ‘more proportionate’ for scaling and challenger banks.”
The letter also puts forward the introduction of a new full UK crypto regulatory regime to bolster the UK’s global position and to extend open banking to new areas as well as supporting the scaling of RegTech solutions.
Encompass Corporation CEO Wayne Johnson – a signer of the open letter – said, “During the last two years, we have also seen the increasing emergence of cryptocurrency and blockchain technology as mainstream payments alternatives, with instances of these being used in connection with money laundering and other nefarious activity,” he said.
“Going forward, regulation, therefore, must address this pandemic-induced trend in financial activity, and adequately respond to new financial technology being deployed across the industry.”
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