The regulatory changes will expand the powers of the national financial regulator and put the crypto industry under stricter control.
Despite the acceptance of the issue of crypto by the Conservative Party under the new Prime Minister Rishi Sunak, the upcoming legislation will make the investigation of the sector more difficult.
The amendment to the Act will expand the powers of the Financial Conduct Authority and may restrict the operation of foreign companies in the UK. According to the Financial Times, the failure of FTX is related to changes in the regulatory framework in the UK.
The Treasury continues to finalize guidelines that will allow the Financial Conduct Authority (FCA) to monitor the activity and circulation of crypto companies. in the country. There will also be restrictions on the sale of crypto in the UK market from overseas. Although the report did not reveal more details about these restrictions, it can be assumed that they will be used to force companies to register with the FCA. The process is very rigorous, with 85% of applicants having passed the FCA’s anti-money laundering (AML) test, according to its director Nikhil Rathi. The guidelines are supported as part of the financial and marketing process. The big bill, which includes but is not limited to crypto laws, has already passed the UK Parliament. Although the UK started its crypto research in 2021, the FT’s sources say that it may fall to 2023 due to “quick events” in the industry.
However, on Dec. 7, the cross-party Treasury committee will hear from experts from the FCA and the Bank of England about the risks of crypto and the “advantages and disadvantages” of central banks issuing cryptocurrency (CBDC). The audience will also include the speech of an investigative journalist, who covers the investments made by UK football fans under the influence of crypto advertising.
In early November, members of the Digital, Culture, Media and Sport committee launched an inquiry to hear from the public about the benefits and risks of non-fungible tokens, or NFTs, as well as blockchain and the national Internet economy.
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