The UK is planning 'robust' new cryptocurrency regulations after the FTX exchange collapse
Britain's finance ministry plans "robust" regulations for cryptocurrency assets, following the collapse of crypto exchange FTX last year, which left millions of people nursing billions of dollars in losses.
Crypto is currently unregulated globally, with firms only having to carry out checks to prevent money laundering.
However, Britain's Financial Conduct Authority (FCA) has said that more than 80 per cent of licence applicants were unable to show they could do this properly as "dark money" flows through the sector.
The draft rules, to be published on Wednesday, would ensure robust, transparent, and fair standards, consistent with the approach to traditional finance, Financial Services Minister Andrew Griffith said in a statement on Tuesday.
"We remain steadfast in our commitment to grow the economy and enable technological change and innovation – and this includes cryptoasset technology," Griffith said.
The new rules come after rising interest rates led to a string of bankruptcies in the sector in 2022, wiping $1.4 trillion (€1.29 trillion) off the value of the crypto market. The price of Bitcoin, the most widely traded, plunged 60 per cent.
The market rout shook confidence in cryptocurrencies, though interest in the underlying technology, most commonly known as blockchain, for other uses like payments remains.
There will be a three-month public consultation on the new plans, followed by proposals for detailed rules from the FCA.
The ministry said its approach would mitigate the most significant risks in the sector.
"These proposals will place responsibility on crypto trading venues for defining the detailed content requirements for admission and disclosure documents - ensuring crypto exchanges have fair and robust standards,"
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