Cryptocurrency assets continue to be on the agenda of many countries. In this context, the UK has introduced new regulations for cryptocurrencies and stablecoins.
These new regulations are specifically designed to cover fiat-backed stablecoins and cryptocurrencies. In an official statement on Monday, the UK government indicated that these new rules will be implemented in phases. The primary goal of these phased regulations is to make it mandatory for companies in the crypto sector serving consumers to be authorized.
Regulations Tighten After FTX’s Collapse
The collapse of the FTX exchange and the subsequent volatility in Bitcoin highlight the importance of regulations in this area. The UK’s move aims to reduce connections with mainstream finance and potential consumer risks.
The Ministry of Finance’s approach to this issue is said to stem from recent market movements in the crypto sector, particularly the failure experienced by FTX.
“The measures proposed by the government were inspired by recent market events that reinforced the claim of effective regulation and industry participation, including the failure of FTX.”The Ministry.
While the European Union has adopted the world’s first comprehensive rules for crypto companies to operate within the block, the UK has also accelerated its steps in this area. At a meeting held by the UK Ministry of Finance in February, there was a consensus on authorizing companies to conduct cryptocurrency activities by the Financial Conduct Authority.
The new rules focus not only on Bitcoin and other cryptocurrencies but also on the sector’s infrastructure, known as blockchain technology.