The UK's Financial Conduct Authority (FCA) has defended its approach to regulating the crypto industry, responding to criticism that its measures are "too harsh" and threaten to stifle innovation. Val Smith, head of payments and digital assets at the FCA's authorisation arm, stressed the importance of maintaining strict standards to protect consumers and preserve the integrity of financial marekts in an article published on his website on October 21. "Loosening our standards and triggering a race to the bottom does not ensure that people and our markets are protected or even function properly." Innovation built quickly on a "foundation of insecurity, unregulation and mistrust" is likely to collapse, Mr. Smith writes.