After the cryptocurrency exchange FTX went bankrupt and caused billions of dollars in losses for millions of users, the United Kingdom’s Ministry of Finance wants to make “robust” laws for crypto assets.
The cryptocurrency market is currently unregulated worldwide, and businesses must only conduct checks to prevent money laundering. But Britain’s Financial Conduct Authority (FCA) said that more than 80% of license applicants couldn’t prove they could do this right because there is “black money” in the sector.
Andrew Griffith, the Minister of Financial Services, talked about how the new rules will ensure standards are strong, fair, and the same for everyone. In addition, he stated that the method they would use would be typical to the field of finance. Griffith added,
“We remain steadfast in our commitment to grow the economy and enable technological progress and innovation. This includes the technology behind cryptoassets.”
After rising interest rates caused financial failures in the industry in 2022, the government made new rules. As a result, the value of the cryptocurrency market dropped by $1.4 trillion. Bitcoin, the most extensively traded cryptocurrency, saw a price drop of sixty percent.
The Financial Conduct Authority (FCA) will present proposals for comprehensive rules after a three-month public consultation.
