Crypto regulation in the UK is set to receive more scrutiny and a tighter framework, despite plans to make the UK a global crypto hub.
When Rishi Sunak became the new Prime Minister of the UK, there were a lot of talks on how the UK can sensibly regulate cryptocurrencies and make adoption imminent. However, regulators are working on stricter rules and guidelines, especially for foreign companies that want to operate in the UK.
According to a recent report, one of the reasons for this is the fall of FTX, which led to the aggravation of the crypto industry and market sentiment.
Therefore, the UK treasury sees it as necessary to have increased supervision of the industry. The new guidelines give the Financial Conduct Authority (FCA) more leverage in terms of overseeing the crypto market in the UK.
Around 85% of companies that registered with the FCA did not pass the anti-money laundering tests. Hence, the need for crypto regulation in the UK is inevitable, according to officials.
These new guidelines could be in effect in 2023. Besides these new guidelines, officials will also work on crypto adoption to make the UK a global crypto hub. Rishi Sunak also opted to adopt Web 3.0 and NFTs in the UK.
Nonetheless, these new guidelines will make cryptocurrencies much stricter. Whether these regulations are sensible or not, we’ll have to wait and see.