The UK Treasury is currently finalizing a Cryptocurrency regulation plan. The news includes major regulatory changes to the crypto sector, as well as how it interacts with foreign firms. In the midst of the FTX meltdown, which threatened the entire industry, cryptocurrency regulation has dominated the news. As a result, the United Kingdom has become the first to take genuine action in the form of regulatory legislation.
UK Regulates Crypto
The regulation of the cryptocurrency industry has long been a point of contention in the financial sector. Whether or not platforms and companies are regulated, and how this interacts with cryptocurrency ideals, has always been a topic of discussion.
This shifted slightly with the demise of FTX and the customer funds that it threatened. With many looking for ways to combat the next FTX, the United Kingdom(UK) has taken action, finalizing a plan to regulate crypto in the country. According to the Financial Times, the development will impose “sweeping rules” in the industry.
Furthermore, those changes include “limits on foreign companies selling into the United Kingdom, provisions for dealing with company failures, and restrictions on advertising products.” According to the report, “Ministers will soon launch a consultation on the latest regulatory regime.”
Following that, Prime Minister Rishi Sunak stated the need for “effective regulation” in the cryptocurrency industry. All of this coincides with a bill currently being debated in parliament that “underpins the UK’s post-Brexit approach to financial regulation.” An amendment to the bill in October allowed for the current inclusion of cryptocurrency provisions.