The approach by the UK government and parliament to bring in comprehensive regulations to guide the crypto industry is not negating the overall belief that the technology powering the digital currency ecosystem is unique and futuristic.
under the United Kingdom (UK) led by Prime Minister Rishi Sunak Is considering giving more powers to the Financial Conduct Authority (FCA) to regulate the digital currency ecosystem. according to a report good From the Financial Times, the collapse and eventual bankruptcy of the FTX derivatives exchange has injected a new sense of urgency with all regulators looking to impose additional controls on the industry.
The new rules, which are being handled by the UK Treasury, will curtail the activities of foreign crypto firms selling their products in the country.
From the era of Rishi Sunak as Chancellor of the Exchequer, the United Kingdom has detailed plans to enact regulations that will make the crypto industry a major hub for digital currencies. The proposed new rules would limit the activities of stakeholders in this space as an antithesis to their initial plans.
Amid the monitoring, the FCA will now censor how crypto companies advertise their products in the UK to ensure they are not misleading. The proposal will also detail the plans or approaches by which companies can be closed, if they are required to leave the UK or approach bankruptcy.
All firms will be required to register with the FCA and pass the regulator’s anti-money laundering (AML) tests. According to FCA chief executive, Nikhil Rathi, the agency has recorded over 85% of firms failing to pass AML tests. With already tighter measures on issuing licenses to firms, tighter regulations could push others further away.
Despite not currently having full authority, the FCA boss said the agency has been very active in warning the public about the “risks of investing in cryptocurrencies, the possibility of losing all your money.”
UK Recognizes Technology Powering Digital Currency Ecosystem
The approach by the UK government and parliament to bring in comprehensive regulations to guide the crypto industry is not negating the overall belief that the technology powering the digital currency ecosystem is unique and futuristic.
City minister, Andrew Griffiths, said in a statement last week that despite bankruptcies in the industry, the government’s focus remains unchanged.
“Yes, there are questions about the future of crypto – but we would be foolish to ignore the potential of the underlying technology,” he said, adding that the financial services bill would set out a framework. Regulating crypto assets and stable coins and that the government will “consult later this year on a world-leading governance for the rest of the cryptoasset market.”
While the crypto industry bill is one part of the larger financial services bill, its acceleration is evident from the continued collapse of major firms in the space and the need to protect the interests of consumers and investors in the United Kingdom.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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