The UK government's and parliament's efforts to introduce broad laws to control the crypto business don't change the view that the technology behind the ecosystem for digital currencies is novel and cutting-edge.
The new laws
Under the direction of Prime Minister Rishi Sunak, the UK is considering giving the Financial Conduct Authority (FCA) more authority to oversee the ecosystem for digital currencies. According to a Financial Times investigation (1), all authorities now feel a heightened sense of urgency to exercise more control over the business due to the fall and ultimate bankruptcy of FTX Derivatives Exchange.
Foreign entities' actions will be constrained by the new regulations being handled by the UK Treasury. Companies that offer cryptocurrency in the nation. Since Rishi Sunak was the Chancellor of the Exchequer in the UK, there have been specific plans to introduce regulations that would turn the crypto business into a significant center for digital currencies. The new laws being considered will restrict the operations of those involved in this area, acting as a contrarian policy to its original intentions.
As part of its monitoring, the FCA will now exercise censorship over how cryptocurrency companies market their products in the UK to prevent misrepresentation. The proposal would also include plans or strategies for winding down businesses if they must depart the UK or file for bankruptcy.
The measures to be implemented
Each company will register with the FCA and complete its Anti-Money Laundering (AML) exams. (2) The FCA's chief executive officer, Nikhil Rathi, claims that more businesses—up to 85%—have failed the organization's AML checks. More restrictive standards may further alienate other businesses, given the existing strict procedures for granting business licenses.
The FCA chief said that despite the agency's limited authority, it is extremely aggressive in publicly alerting the public about the hazards of investing in cryptocurrencies and the possibility of losing all your money. UK Recognizes the Technology Driving the Ecosystem of Digital Currencies. The UK government and parliament's plan to introduce extensive laws to oversee the cryptocurrency business does not change the notion that the ecosystem supporting digital currencies is powered by cutting-edge technology.
In a statement last week, City Minister Andrew Griffith (3) underlined that the government's priorities had not altered despite recent bankruptcies in the sector. Although the bigger Financial Services Bill includes the Crypto Field Bill, its acceleration is visible in the ongoing failure of significant enterprises in the industry. The requirement is to protect British investors' and consumers' interests.