With countries like the United States moving to pay more attention to cryptocurrency investments, the United Kingdom has risen to reciprocate. A report from London said that consultations are currently going on to secure the cryptocurrency market further.
This is coming when the investor’s morale is low following the collapse of FTX and such major exchanges. Although there are many reasons behind the sudden collapse, the major ones are attributed to the diminishing value of the BTC.
Today, the Treasury has disclosed its plans to avoid future scenarios like this by introducing a crypto regulation. It was also gathered that this move was motivated by the numerous call from different economic sectors to put up proactive measures to avoid reoccurrence. While introducing this plan, the official statement mentioned that the UK government is committed to creating exchanges that operate on a tighter and fairer standard.
This regulation will give other crypto companies a safe operational ground if it is finally introduced. Analysts believe that such a move will compel crypto firms to be more responsible in their operations. It will also create an avenue where customers can hold these companies accountable for their actions.
Also, this regulation is reported to have the ability to compel these crypto firms to augment their safety apparatus to facilitate the safe storage of all customer’s digital assets. This development is coming at a time when Sir Jon Cunliffe: deputy governor of the Bank of England, in an interview with Sky News, revealed that cryptocurrency trading is an extremely risky business to engage in without protection from traditional regulation, which is often the responsibility of governments.
While commenting on the unfortunate collapse of the FTX, Cunliffe defined the cryptocurrency market as “extremely volatile” and requested that every investor needs to be protected more than they already are hence, the impending regulation.
Meanwhile, an independent investigative report disclosed that a little over 80k UK residents were affected by the FTX: the second biggest cryptocurrency exchange in the world. The report also claimed that one of the investors had lost £1 million of his net worth due to this event.
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