The landmark legal case brought by the FCA against HTX, which the regulator says has promoted crypto-asset services to UK consumers without authorisation, will be a litmus test, establishing whether it has the teeth for enforcement against overseas crypto-exchanges.
Lawyers agree that the FCA has no choice but to take the toughest steps possible against companies that transgress against its cryptocurrency rules for its own survival.
"For as long as the digital asset space remains a growth area and a priority for the UK government, the FCA needs to be seen to be taking steps to ensure compliance with the applicable laws and regulations," Kate Gee, a partner at Signature Litigation LLP, warned. "If non-compliance is left unaddressed, the regime risks being rendered toothless."