Summary: The UK government is proposing to regulate the crypto industry after the collapse of FTX. The proposals aim to extend existing financial regulations to the crypto industry and focus on exchanges and wallets that facilitate trades and hold assets for customers.
The effect of FTX collapse toward the end of 2022 appears to know no bounds as it is now pushing the UK government to regulate the crypto industry.
It has already begun making regulatory moves with some proposals that it announced on Tuesday, according to CNBC Tech. The proposals sought to ensure that existing financial regulations extend to the crypto industry as well, at least to some degree.
More importantly, the government has its sight on exchanges and wallets that facilitate trades and hold assets for customers, which is what FTX was before its crash.
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In a statement, the British authorities revealed that they were trying to regulate the activities that allow risky loans between crypto companies.
“We remain steadfast in our commitment to grow the economy and enable technological change and innovation — and this includes cryptoasset technology. But we must also protect consumers who are embracing this new technology — ensuring robust, transparent, and fair standards,” Andrew Griffith, economic secretary to the Treasury, said.
The UK is not alone in moving to scrutinise crypto movers as the US and other European bodies have done the same already. Also, they have all increased regulatory measures visibly since the FTX drama.
The UK wants more transparency from crypto exchanges which will include filing the correct disclosure documents and plain requirements for using their platforms. It will also touch on ads, which have been criticised in the past as painting unrealistic pictures of what crypto trading involves.
Crypto traders and enthusiasts in Britain may be heading for better days as the new Prime Minister, Rishi Sunak, is allegedly a crypto-friendly leader.
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