Discussions surrounding cryptocurrencies have typically centered on how they should be regulated. The crypto crisis of 2022, notably the downfall of FTX pushed the UK to ultimately announce plans for the regulation of the crypto sector.
According to the Financial Times report, the UK Treasury will impose sweeping rules in the sector. Furthermore, the reforms include limits on foreign corporations selling into the UK, mechanisms for dealing with company failures, and curbs on advertising items.
The collapse of FTX gave the government a trigger to impose an order on the crypto industry, ministers will soon begin a consultation on the new regulatory system.
Also Read: What Will the FTX Collapse Mean for the Crypto Industry’s Future?
The Treasury select committee is in the middle of its investigation into the impact of cryptocurrencies in the UK. It is gearing up to question FCA and Bank of England experts about the risks involved, the need for regulation, and the benefits and drawbacks of CBDC.
The FCA will be able to monitor the crypto market more comprehensively thanks to the additional laws, notably by keeping an eye on how businesses conduct themselves and promote their goods.
The proposals would outline how cryptocurrency companies may be scaled back, and there would be restrictions on selling into the UK market from abroad.
A Treasury spokesperson stated, “The UK is committed to creating a regulatory environment in which firms can innovate, while crucially maintaining financial stability and regulatory standards so that people and businesses can use new technologies both reliably and safely.”
An investigative journalist will also address how many football fans have lost money as a result of cryptocurrency tokens promoted by well-known players and clubs to the Treasury Select Committee.
The Financial Services Bill will create a framework for regulating crypto assets and stablecoins, according to City Minister Andrew Griffith. The government will also be consulting on a world-leading regime for the rest of the crypto-asset industry later this year.
