Great Britain will enforce robust standards in the crypto industry after the FTX crash

Great Britain will enforce robust standards in the crypto industry after the FTX crash

The government of the United Kingdom is ready to tighten the rules for the local cryptocurrency sector in order to prevent another undesirable event like the collapse of the FTX.

The recently appointed Prime Minister-Rishi Sunak-is known as a supporter of blockchain technology and argues that the country should become a "global cryptoasset technology center".

Protection of people is the most important

Andrew Griffith-Ministry of Economic Affairs of the Ministry of Finance-revealed the government's intention to design a regulatory framework for the domestic cryptocurrency industry that does not stop technological development. The primary goal will be to ensure maximum security for consumers in dealing with Bitcoin and alternative coins:

"We remain steadfast in our commitment to growing the economy and enable technological change and innovation-and this also includes cryptoasset technology. But we also have to protect consumers who accept this new technology-and ensure robust, transparent and fair standards."

Griffith previously argued that Great Britain had to improve customer protection in crypto in order to avoid another catastrophe in the industry such as the crash of FTX. The implosion caused a massive decline in market, significant investor losses and undermining the reputation of the entire sector.

In addition, it triggered a domino effect that led to many other players had liquidity problems or even registered bankruptcy. The once prominent Blockfi and Data-Preserver-Spaces = "True"> Genesis

The rules proposed by the British authorities will oblige companies for digital assets to publish disclosures of documents to customers. You will also offer a relaxed regulation of crypto advertising that enables the companies registered with the Financial Conduct Authority to start marketing campaigns.

However, the upcoming regulation could take a few years before the parliament officially approves it.

Rishi Sunaks ambitions

The former treasure chancellor of the United Kingdom-Rishi Sunak-became Prime Minister of the United Kingdom in October. His appointment seemed to be good news for British crypto participants because he presented himself as supporters of the sector.

"We are working on making Britain a global center for crypto systems. We want to see the companies of tomorrow and the jobs that they create," he said said again in April 2022.

He also Asked The Royal Mint to create a non-fungible token (NFT) collection. The systems should be ready last summer.

Julian Sawyer-CEO of Zodia Custody-believes that the regulatory roadmap for Great Britain could be "super useful" to become a crypto hub.

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