UK to Introduce New Crypto Regulation

As it became known, in the near future the Cabinet of the United Kingdom will introduce new rules to regulate the cryptocurrency industry. They will include, in particular, monitoring of sales and marketing.

Thus, the FCA will have new powers to restrict advertising of foreign companies. In addition, the Financial Conduct Authority will be able to oversee crypto companies more broadly. This is supposed to help protect consumers from fraud and abuse.

The amendments will be added to the financial services and markets bill that is currently being considered by the Parliament. Its clauses include stablecoins and other crypto assets.

Ian Taylor, the head of the association for the UK cryptoasset industry CryptoUK, spoke out in favor of such measures. According to him, FTX collapse was a clear example of actual risks associated with the lack of the regulatory framework for cryptocurrency companies.

Recall that Deputy Governor of the Bank of England, Jon Cunliffe, has earlier proposed to extend existing financial regulations to digital assets by analogy to traditional financial assets.

Earlier, the regulator insisted on the regulation of cryptocurrencies with the focus on tomorrow risks to financial stability.

In the meantime, the European Union member states will be enabled to block advertisements and websites of certain organizations associated with digital assets.