The regulation changes will increase the financial regulator’s authority and increase oversight of the cryptocurrency market.
The British Treasury is putting the finishing touches on a package of regulations for the cryptocurrency market that will include advertising and sales restrictions for overseas businesses.
The package will give the Financial Conduct Authority more authority to regulate the industry, including the ability to keep an eye on how businesses run and promote their products.
The regulatory environment in the UK has changed as a result of the FTX crash. According to reports, the Treasury is putting the finishing touches on a set of regulations that would let the Financial Conduct Authority (FCA) keep an eye on how crypto businesses in the nation operate and advertise.
Additionally, there would be limitations on businesses selling to the British market from abroad and strategies for closing down cryptocurrency businesses.
The market upheaval that followed the demise of bitcoin exchange FTX, which requested bankruptcy court protection last month, is followed by the new regulations.
The restrictions would likely be enforced to compel the businesses to register with the FCA, even though the report provides no further details on them. According to FCA Chief Executive Nikhil Rathi, the process is difficult enough as it is, as 85% of the applicants failed the FCA’s anti-money laundering (AML) tests.
The financial services and markets bill includes the guidelines, which are currently being prepared. The substantial measure has already been presented to the British Parliament and contains, but is not limited to, crypto legislation.
The FT sources claim that although the U.K. started its consultation on cryptocurrencies in 2021, “fast-moving events” in the sector may cause it to be delayed until 2023.