Despite the Conservative Party’s rhetorical support for cryptocurrencies under new Prime Minister Rishi Sunak, the upcoming regulatory framework will tighten control over the sector. The updated legislation will expand the powers of the financial regulator and likely limit the operations of foreign companies in the UK.
According to a Financial Times note , the collapse of FTX has influenced the course of the regulatory regime in the UK. Apparently, the Treasury is finalizing a package of guidelines that will allow the Financial Conduct Authority (FCA) to supervise operations. As well as advertising related to cryptocurrencies in the country. There would also be restrictions on the sale of cryptocurrencies in the UK market from abroad.
Although the report does not reveal more details about those restrictions, presumably they would be applied to force companies to register with the FCA. The procedure is already very complicated. Well, 85% of applicants failed the FCA’s anti-money laundering (AML) tests, according to its chief executive, Nikhil Rathi.