U.K. Reportedly Preparing to Limit Crypto Services From Abroad
- Unnamed sourced told the Financial Times that the U.K. Treasury was preparing new rules that would give the FCA broader powers over the crypto market.
- The regulations will allow the FCA to monitor and limit operations and advertising of crypto companies, as well as restrict crypto sales in the U.K. from foreign companies.
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Regulators in the United Kingdom could soon have more power over crypto advertising, and the ability to limit operations of foreign crypto companies in the country, the Financial Times (FT) reported on 5 December.
The publication cited “three people” familiar with the matter, who said that the U.K. Treasury was finalizing a package of new rules that will give the Financial Conduct Authority (FCA) more power to police the crypto sector. The new rules — which should be released for consultation soon — are expected to be added to the Financial Services and Markets Bill, a piece of legislation that has already been introduced to the British Parliament. A Treasury spokesperson told FT:
“The UK is committed to creating a regulatory environment in which firms can innovate, while crucially maintaining financial stability and regulatory standards so that people and businesses can use new technologies both reliably and safely.”
According to FT’s sources, the proposed changes will allow the FCA to monitor and limit the operations and advertising of crypto companies in the U.K.. The new regulations will reportedly include restrictions on crypto sales from foreign companies to U.K. citizens, as well as rules on how crypto companies could be wound down in the country.
Some government insiders also told FT that the consultation for the new rules could be launched in early 2023 because of “fast-moving events” in the crypto industry, referring to the recent collapse of cryptocurrency exchange FTX. Numerous companies were affected after FTX Group filed for bankruptcy in November, with the most recent being crypto lender BlockFi, which filed for Chapter 11 bankruptcy on 28 November citing FTX as one of the reasons for its collapse.
- Sam Bankman-Fried’s legal counsel had claimed he should not be charged with any crimes involving FTX as it was not regulated in the U.S., only FTX.US was.
- The DoJ said the claim was irrelevant as SBF was charged for violating existing laws for misappropriating customer assets.
Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
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- Bitstamp, the world’s longest-running crypto exchange, has been raising funds since late June, with its advisor being Michael Novogratz’s Galaxy Digital.
- The new funds will reportedly be used to launch a new derivatives platform in Europe, expand to new markets in Asia, scale its operations in the U.K..
- The U.K. Financial Conduct Authority continues its crackdown on crypto ATMs in the country, and has disrupted a total of 26 machines since the start of the year.
- The regulator warned the public back in March 2022 that all crypto ATMs in the country were operating illegally, and issued a “shut down or face further action” order.