Despite the incoming Prime Minister Rishi Sunak’s verbal support for cryptocurrencies, the planned regulatory framework is expected to increase business monitoring.
The legal revisions will probably restrict foreign corporations’ operations in the UK while increasing the financial regulator’s authority.
Compulsory for crypto companies to register with the FCA
The Financial Times said that the FTX collapse has impacted the development of the UK’s regulatory system. According to reports, the Treasury will put the finishing touches on a set of regulations that would let the Financial Conduct Authority (FCA) monitor how crypto businesses in the nation operate and advertise. Additionally, there would be limitations on international firms selling cryptocurrency in the UK.
Although the study did not go into further detail on those limits, it is conceivable that they would be put into place to compel the companies to register with the FCA. According to FCA Chief Executive Nikhil Rathi, the process is arduous enough, as 85% of the applicants failed the FCA’s anti-money laundering (AML) tests.
But on 7 December, a bipartisan Treasury Committee will hear from FCA and Bank of England experts about the dangers of cryptocurrency and the “pros and cons” of Central Bank Digital Currency (CBDC).
The investigative journalist who covered the investments made by British football fans under the influence of cryptocurrency advertisements will also speak during the session.
The election of Rishi Sunak as Prime Minister in October was viewed as a new chance to create favorable legal frameworks and advance the UK as a premier global hub for cryptocurrency.
Ministers are now scheduled to participate in a consultation on the new regulatory framework. The panel on Wednesday will also hear testimony about the harm that cryptocurrency tokens promoted by well-known players and clubs have done to football fans.