- With FTX down, and the customers’ money in jeopardy, things started to change slightly.
- This move follows Prime Minister Rishi Sunak’s call for “effective regulation.”
According to the Financial Times, the UK Treasury is working to finalize a framework for Crypto regulation. There have been some major legislative shifts in the crypto industry and its interactions with overseas businesses that have made headlines recently.
The regulatory status of cryptocurrencies has dominated headlines throughout the FTX collapse, which jeopardized the whole sector. Therefore, the United Kingdom is the first to take decisive action by passing regulating laws.
Discussions about the financial sector’s role in regulating the cryptocurrency business are nothing new. Whether or not platforms and corporations are being controlled, and how that interacts with crypto principles have always been a fascinating discussion.
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With FTX going down, and the customers’ money in jeopardy, things started to change slightly. With many people looking for solutions to prevent the next FTX, the UK has finally taken the necessary steps to regulate cryptocurrency.
The Financial Times originally reported the development would adopt “sweeping rules,” in the business. Furthermore, these alterations include “restrictions on advertising products,” “limits on foreign companies selling into the UK,” and “provisions for how to deal with the collapse of companies.”
A discussion on the new regulatory system is expected to be launched by ministers soon, according to the report. This move follows Prime Minister Rishi Sunak’s call for “effective regulation” of the cryptocurrency market.
This year, the Financial Conduct Authority allegedly began looking into a number of cryptocurrency businesses situated in the United Kingdom. Additionally, the newly granted powers will equip the FCA with the capacity to monitor the sector more extensively.