The U.K. Financial Conduct Authority (FCA) has suggested that cryptocurrency firms in the country could be exempted from rules that ensure they act with integrity and in consumers' interest, according to Reuters. 

What's happening? 

In April, Britain signaled that it would cooperate with the U.S. on the best approach in dealing with digital assets. The report explained that this could mean sharing the Trump administration's stance that regulatory curbs should be rolled back.

U.K. finance minister Rachel Reeves recently spoke about the need to boost growth and competitiveness in Britain's financial services industry.

While innovation can be exciting, parts of the crypto sector may be aligning themselves with tech industry-like decisions that put innovation before consumer safety. 

To this end, Reuters shared that the FCA has suggested waiving four principles for crypto asset trading platforms. 

These principles include conducting business with integrity, skill, care, and diligence; acting in the consumer's interest; and taking reasonable care to ensure advice and discretionary decisions are suitable for customers.

Why are these proposed changes so concerning?

The risk involved in cryptocurrency appears to be part of the reason the FCA wants to loosen restrictions. 

Last year, Reeves shared the opinion that financial regulators in the country had gone too far in squeezing out risk after the global financial crisis, Reuters detailed.

"We want to develop a sustainable and competitive crypto sector – balancing innovation, market integrity and trust," said David Geale, the FCA's executive director of payments and digital finance, according to Reuters' more recent report.

He continued: "Our proposals won't remove the risks of investing in crypto, but they will help firms meet common standards so consumers have a better idea of what to expect."

Do you worry about companies having too much of your personal data? Absolutely 👍 Sometimes 🤔 Not really 👎 I'm not sure 🤷 Click your choice to see results and speak your mind.

It's unclear how removing consumer-focused rules will help improve trust for potential investors. 

But Reuters said the regulator has asked for feedback "on whether the consumer duty, which requires firms to put their customers first, and customer access to the Financial Ombudsman Service for compensation should apply for crypto asset firms." 

Rapidly expanding cryptocurrency operations, which require vast resources, can also have serious environmental impacts.

Bitcoin mining alone consumes as much electricity as entire countries and can put a strain on local water resources. According to Greenpeace, 62% of that electricity was generated by using dirty fuels in 2022. 

There are also several incidents where cryptocurrency operations failed to comply with local laws, resulting in hazardous waste conditions. 

What's being done about the expansion of cryptocurrency operations?

British residents can make their voices heard by responding with feedback about waiving those fiduciary principles by the deadline of Nov. 12, which Reuters noted. 

In a positive trend for the environment, the University of Cambridge reported that bitcoin operations are now getting 52.4% of their power from sustainable energy sources, which include a mix of nuclear, solar, hydro, and wind.

The push toward innovation has, in part, helped the cryptocurrency sector embrace and invest in more sustainable energy sources. But nearby communities need to remain vocal and vigilant about how these and similar operations impact consumer energy costs. 

Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.