The collapse of FTX shook all economies, including England’s. Indeed, since the fall of the second crypto exchange platform, several measures have been taken to prevent such a disaster from happening again. Thus, the United Kingdom has opted for a plan for more effective and strict regulation of the industry. Through it, the government intends to supervise, restrict, control and even investigate all the activities of crypto companies operating on British soil.
Crypto: What will change in the UK with the new measures?
Regulation of the crypto industry has always been a hot topic in the UK. According to a report from FinancialTimes, the British treasury has reportedly finalized its crypto regulatory plan. The said plan will focus on two axes, namely the radical changes of the crypto industry and the how foreign companies operate in England.
Moreover, with the collapse of FTX and the liquidation of client funds, the English administration wants to be more careful with regard to the activities carried out by the players in this field. How do crypto companies and platforms manage to establish themselves, and what impact do they have on the financial ideals of the English? These are the questions on which the English legislators have banked.
Thus, a regulatory plan is not trivial. It includes radical rules to clean up the crypto industry once and for all. Other measures include:
- Restrictions on foreign companies deploying in the UK.
- Restrictions on advertising products.
- Devices on crisis management linked to the collapse of an exchange.
Furthermore, the Prime Minister Rishi Sunak recalled the need for a “effective regulation”. Thus, according to the Financial Times report, ministers will very soon launch a consultation on the new regulatory regime.
Finally, the new powers would have given the Financial Conduct Authority full rights to oversee the crypto industry more broadly. Similarly, the FCA is said to have opened an investigation into all UK-based crypto-asset companies.
Conclusion
Creating a plan to regularize the crypto industry has always been high on the UK government’s agenda. This was reinforced by the collapse of FTX. Thus, a bill currently being considered by Parliament supports this project. Also, an amendment to this bill last October allowed the inclusion of new provisions regarding cryptocurrencies.
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