Cryptocurrency Regulation UK: Big Reform Coming
In the wake of the fall of FTX, the government of the UK has planned major reforms in cryptocurrency regulation.
It plans to bring digital assets under mainstream financial laws. However, it has backtracked from the resolve of treating cryptocurrencies as stocks, insurance products, and shares.
On 31 January, the Treasury announced that it would publish several proposals to align traditional finance regulations with the crypto industry.
Key changes in cryptocurrency regulation UK
The Treasury anticipates the security of the funds of crypto users. The regulatory proposals will likely assure customers of financial security even if the crypto firm experiences insolvency.
Moreover, it would establish robust rules for token promotion to eliminate misleading information.
On the other hand, the Treasury will ensure that the crypto firms strictly follow the new regulations. It will help remove bad actors from the industry from running scams like pump and dump schemes. Regulators will also focus on data reporting to bring more clarity and better regularisation.
The ministry believes that these changes will likely protect investors' rights. These reforms may also minimise the risk of potential scams.
The need for regulations after the FTX fall
2022 was a testing year for cryptocurrency investors. The year's highlights were the Terra-Luna debacle and the bankruptcy of Celsius and other lenders. However, one event which really rattled the market was the collapse of Sam Bankman-Fried’s exchange, and many began to question, “Is crypto dead after the FTX collapse?". This crash restricted many investors from accessing their funds. Now, cryptocurrency regulation has become inevitable.
The UK will be one of the first countries to amend its digital asset laws. According to a BBC report, Harriet Baldwin MP says that the crypto market is a wild west.
However, the market also sees many technological innovations, which may help the country's economy. Therefore, the Treasury plans to reform cryptocurrency regulation UK laws to ensure security for investors.
Author: Wasay Ali
Wasay Ali is a versatile professional writer with global experience and a background in mechanical engineering and social science. He is adept at crafting news and informational content for the crypto space and has experience writing for other niches. He is a professional SEO content writer who has worked with several digital marketing agencies and clients in the US, UK, Pakistan, and Europe. He is a dedicated volunteer and enjoys reading, writing, poetry, and going to the gym. He is an INFJ-A personality type dedicated to positively impacting the world. Wasay has a passion for writing as it allows him to express his creativity, share his knowledge, and connect with people worldwide.
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