UK to enforce ‘robust’ standards in crypto industry after FTX crash – Crypto News Today

The UK government is willing to tighten rules on the local cryptocurrency sector to prevent another adverse event like the collapse of FTX.

The recently appointed Prime Minister – Rishi Sunak – is known as an advocate for blockchain technology, saying the country should become “a global crypto-asset technology hub”.

The protection of people is the most important

Andrew Griffith – Economic Secretary to the Treasury – revealed the government’s intentions to design a regulatory framework for the domestic cryptocurrency industry that will not stop technological development. The main objective will be to ensure maximum security for consumers when dealing with bitcoins and alternative coins:

“We remain true to our commitment to growing the economy and enabling technological change and innovation – and that includes crypto-asset technology. But we must also protect consumers who embrace this new technology, ensuring strong, transparent and fair standards.”

Griffith has previously argued that the UK needs to improve customer protection in crypto to avoid another industry disaster like the FTX crash. The implosion caused a massive market decline, significant losses for investors and undermined the reputation of the entire industry.

Moreover, it triggered a domino effect which saw many other players experiencing liquidity problems or even declaring bankruptcy. The other time prominent BlockFi and Genesis are some examples.

The rules, proposed by UK authorities, will require digital asset companies to publish the documents to be disclosed to clients. They will also offer relaxed regulations on crypto advertisements, allowing entities registered with the Financial Conduct Authority to launch marketing campaigns.

The upcoming settlement, however, could take a few years before Parliament formally approves it.

The ambitions of Rishi Sunak

The UK’s former Chancellor of the Exchequer – Rishi Sunak – became UK Prime Minister in October last year. His appointment seemed like good news for UK crypto participants as he presented himself as a promoter of the sector.

“We are working to make the UK a global crypto-asset hub. We want to see the businesses of tomorrow and the jobs they create here in the UK,” he said. said back in April 2022.

He also has request Royal Mint to create a collection of non-fungible tokens (NFTs). The assets were supposed to be ready last summer.

Julian Sawyer – CEO of Zodia Custody – believes the regulatory roadmap outlined by Sunak’s firm could be “super helpful” for the UK in terms of becoming a crypto hub.