UK Strengthens Regulation of Cryptocurrencies
2022.12.06 05:09
UK Strengthens Regulation of Cryptocurrencies
Budrigannews.com – Despite the rhetorical embrace of cryptocurrency by the Conservative Party under the new Prime Minister Rishi Sunak, the upcoming regulatory framework will reportedly increase industry scrutiny. The amendments to the legislation will probably restrict the activities of foreign businesses in the United Kingdom and increase the financial regulator’s authority.
The Financial Times reported that the FTX collapse had an impact on the UK’s regulatory framework. The Treasury is reportedly working on a set of guidelines that will allow the Financial Conduct Authority (FCA) to monitor the advertising and operations of crypto companies in the country. Selling crypto from abroad on the UK market would also be restricted.
Although the report does not provide any additional details about those restrictions, it is reasonable to assume that they would be enacted to compel businesses to register with the FCA. According to FCA chief executive Nikhil Rathi, 85 percent of applicants failed the anti-money laundering (AML) tests, making the process already difficult.
As a component of the Financial Services and Markets Bill, the guidelines are currently being prepared. The massive bill has already been presented to the British Parliament. It does not just cover crypto regulation. According to FT sources, “fast-moving events” in the industry could delay the UK’s crypto consultation, which was supposed to begin in 2021.
However, on December 7, the FCA and Bank of England experts will speak to the cross-party Treasury committee about the risks of cryptocurrency and the “pros and cons” of central bank-issued cryptocurrency (CBDC). The investigative journalist who has covered the investments made by British football fans under the influence of crypto advertisements will also speak at the hearing.
At the beginning of November, members of the Digital, Culture, Media, and Sport Committee launched an inquiry to get feedback from the general public regarding the potential advantages and disadvantages of blockchain and nonfungible tokens, or NFTs, for the economy of the nation.
