Great Britain concludes plans to regulate the Wild West crypto sector

The Ministry of Finance provides plans for a package of comprehensive rules to regulate the cryptocurrency industry, including restrictions on foreign companies that sell to the United Kingdom, provisions on how to deal with the collapse of companies and restrictions on advertising for products.

The ministers will shortly initiate a consultation on the new regulatory system after FTX's imposion has given the government's promise to bring order to the "wild west" of the Financial world.

Prime Minister Rishi Sunak said in April when he was still a chancellor that an "effective regulation" would contribute to making Great Britain a global center for cryptoasset technology, and "would encourage, innovate and expand the companies of tomorrow.

The Financial Conduct Authority began this year to examine the money laundering rollers from Crypto companies based in Great Britain, but their lack of more comprehensive powers to protect consumers in areas such as misleading sale, incorrect advertising, fraud and misconduct.

The new powers will enable the FCA to monitor crypto more extensive, including monitoring of how companies operate and advertise their products, said three people who are familiar with the Ministry of Finance.

They added that there would be restrictions for selling overseas onto the British market and that the suggestions would be presented with how crypto companies could be handled.

The powers will be part of the Financial Service and Market Act, a far-reaching draft law that goes through the parliament. The draft law, which underpins the United Kingdom's post-Brexit approach to financial regulation, was changed at the end of October in order to include future provisions for cryptocurrencies.

The government's endeavor to make Great Britain a global hub has come into focus in recent months when the crypto industry was involved in one crisis after another.

City Minister Andrew Griffith existed last week that these ambitions remained unchanged despite the latest disasters. "Yes, there are questions about the future of crypto - but we would be stupid to ignore the potential of the underlying technology," he said at an event in Edinburgh.

He said that the Financial Service Act will create a framework for the regulation of cryptoassets and stable coins, and the government will "later advise a worldwide leading regime for the rest of the cryptoasset market". Stable coins are crypto systems, the value of which is bound to a highly liquid traditional asset such as the US dollar or the British pound.

"Great Britain has endeavored to create a regulatory environment in which companies can be innovative, while the financial stability and regulatory standards are decisively maintained so that people and companies can use new technologies both reliably and safely," said a spokesman for the Financial Times.

"The government has already taken steps to bring certain cryptoasset activities into the scope of British regulation-and will advise itself on suggestions for a wider regulatory system." The United Kingdom started a consultation for cryptor regulation in early 2021, which mainly focused on stable coins.

Some government insiders believe that the schedule for the start of the consultation could shift to the early 2023 due to "fast -moving events" in the crypto industry.

Nikhil Rathi, CEO of the FCA, said at the FT's Banken summit last week that his agency already in areas in which she has no powers is "proactive", including public warning against "the risks of investments in crypto, the potential to lose all of money". “.

he added that 85 percent of companies who had made an application for admission to the regulatory authority's crypto register that had not passed the FCA anti-money laundering tests.

The cross -party treasury Select Committee is in the middle of his investigation into the influence of cryptocurrency in Great Britain. On Wednesday, she will ask experts from the FCA and Bank of England about their risks, the arguments for regulation and the advantages and disadvantages of the cryptocurrency issued by the central bank, known as CBDC.

The committee will also learn from an investigative journalist how many football fans have lost by crypto tokens supported by top-class players and clubs.

The FCA and the Boe rejected a statement.

Additional reporting by Owen Walker