UK House of Lords Calls for Greater Regulation of Cryptocurrencies

The UK Parliament is considering a bill on financial services and markets, which partially regulates cryptocurrencies. However, the House of Lords is calling for more comprehensive oversight. The reason for such an attitude towards cryptocurrencies was a rather difficult year for the digital asset market.. In addition, high-profile events like the collapse of the Terra ecosystem and the bankruptcy of the FTX exchange attracted attention to the industry, including regulators. “The recent crash of FTX showed both the volatility of the cryptocurrency market and the vulnerability to fraud.. Managing new innovative opportunities and preventing their use for criminal purposes has become a real challenge for the regulator, both structurally and quantitatively.. Frankly, I'm not sure that the FCA is really ready for such a regulation,” said Alan Smith, a member of the House of Lords. He compared the cryptocurrency industry to online casinos and other similar gambling, noting that perhaps the cryptocurrency industry will need a completely new approach to regulation. “The constant evolution of digital assets represents not only a financial revolution, but also a technological and conceptual one.. They just don't fit into existing regulatory categories and approaches,” said colleague Jonathan Hill. In mid-December, it was reported that the future head of the FCA was calling for tighter regulation of the cryptocurrency industry.