coinspress.com
The United Kingdom has unveiled plans to introduce pioneering regulations governing the cryptocurrency sector.
This legislation mandates that market participants obtain authorization before offering services to consumers. While cryptoassets represent a small segment of the financial system, concerns arose following the revival of bitcoin’s value after the collapse of the FTX crypto exchange.
The European Union has already sanctioned comprehensive rules for crypto markets, attracting firms to set up base within the EU. In line with a February public consultation, the UK’s finance ministry will require firms engaged in cryptoasset activities to be authorized by the Financial Conduct Authority.
These rules primarily focus on cryptoassets like bitcoin and the underlying distributed ledger technology. They are shaped by recent market events, emphasizing the need for effective regulation and industry engagement, as indicated by the ministry.
The UK is committed to creating a regulatory environment that fosters innovation while maintaining financial stability. The aim is to enable the public to safely and reliably use new technologies.
To bring clarity to the sector, the country plans to accelerate the implementation of these rules and present supplementary legislation to parliament in the next year.
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Presently, crypto firms are only required to have measures against money laundering. This announcement comes amid a revival in the crypto sector’s prospects.
Bitcoin, the largest cryptocurrency, surged to $38,872 last week, marking its highest value in nearly a year and a half. This upturn is driven by growing speculation about the imminent launch of an exchange-traded bitcoin fund in the United States.