crypto regulationsThe Financial Conduct Authority is vested with more authority under the new crypto regulatory bill.
The United Kingdom’s Treasury, responsible for developing and implementing the government’s public finance and economic policy, is reportedly preparing guidelines to strengthen crypto regulations.
According to news reports by Financial Times, the new set of guidelines restricts the ability of foreign companies to sell their products and services on the British market, provides information on how to handle the collapse of crypto companies, and restricts crypto advertising.
Financial Conduct Authority Introduce Crypto Rules
In addition, the Financial Conduct Authority (FCA) in the UK will have expanded regulatory authority over the cryptocurrency sector due to the rules. FCA will monitor crypto firms’ operations and marketing in light of the new crypto bill.
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FCA published a consultation paper to determine how the crypto marketing industry works. Until February 7, 2023, the UK’s financial watchdog is taking comments on crypto ads.
It’s important to note that the Financial Times report doesn’t have details what rules might be made. However, the news source emphasized that organizations wishing to conduct business in the United Kingdom must register with the Financial Conduct Authority (FCA), another burden for crypto enterprises.
According to CEO of FCA Nikhil Rathi, anti-money-laundering (AML) tests were failed by 85% of enterprises seeking UK registration.
The UK’s financial service and market bill, which has already been presented crypto regulations to the British Parliament, is said to include the new rules.
The Treasury of the United Kingdom had a representative said:
The UK is committed to making a regulatory environment where companies can innovate while keeping financial stability and regulatory standards high so that people and businesses can use new technologies reliably and safely.
On December 7, the cross-party Treasury committee, the Bank of England, and the Financial Conduct Authority (FCA) will meet to discuss central bank digital money and its “pros and downsides” (CBDC).