UK Plans to Regulate Crypto
The UK government has taken steps to regulate the cryptocurrency market in response to the fraudulent practices that came to light last year and ultimately led to the bankruptcy of FTX.
The Treasury announced plans to regulate various crypto activities, similar to the regulation of traditional finance. It also temporarily reversed its decision to align cryptocurrency advertising regulations with those for stocks, shares, and insurance. One of the proposals aims to increase oversight of financial intermediaries and custodians that manage cryptocurrencies for their clients.
The government is aiming to establish a "robust world-first regime" that strengthens rules around crypto lending while protecting consumers and ensuring the resilience of companies. A consultation on the proposed regulations will be published on Wednesday to gather feedback from industry participants and experts, with a response to be crafted after the consultation ends on 30th of April.
The goal is to bring the UK's crypto regulatory environment to a more neutral stance while supporting the country's goal of becoming a global crypto hub.
Sources:
https://coinedition.com/u-k-moves-ahead-with-bringing-crypto-industry-under-regulation/