Despite the new UK government’s more positive attitude towards cryptocurrencies, the digital assets regulation bill implies restrictions for foreign legal entities.
The UK Treasury is finalizing a package of legal regulations to regulate cryptocurrencies. The recent collapse of the FTX exchange has impacted these regulations, with officials suggesting tighter regulation of crypto company advertising, as well as limiting the ability of foreign legal entities to sell digital assets in the UK. The Financial Conduct Authority (FCA) will oversee compliance.
There is no detailed information about the requirements of the new law yet. It is expected to be adopted next year.
On Wednesday, December 7, a committee of the UK Treasury will hold a meeting with experts from the FCA and the Central Bank about the risks of cryptocurrencies, as well as the “pros and cons” of government digital currencies. Also at the meeting, a specialist is going to speak, who conducted an investigation into the investments of football fans in cryptocurrencies after advertising with the participation of athletes.
Back in 2020, the UK authorities obliged cryptocurrency companies to register with the FCA. But due to the complexity of the process, many firms began to transfer business offshore, while continuing to work in the United Kingdom. The new bill would ban such companies from operating in the country.
Source: Bits
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