Currently, the UK Parliament is considering a draft law on financial services and markets, which provides for a certain degree of regulation of digital currencies. The House of Lords, however, favors more careful control. The current state of the cryptocurrency market, as well as the collapse of Terra and the bankruptcy of FTX caused the need for new laws. These events led to increased regulatory attention.
Alan Smith, a member of the House of Lords, stated:
"The FTX disruption demonstrated how unpredictable cryptocurrencies can be and how easily they can be used for fraudulent purposes. Controlling these innovative capabilities and ensuring that they are not used criminally is a huge task for regulators, and I'm not sure the FCA is really ready for it."
He then compared cryptocurrencies to online casinos or gambling, suggesting that they might require a completely new approach to regulation.
Jonathan Hill supported his words, noting that digital assets represent not only a financial, but also a technological revolution — something that conventional regulatory categories cannot adequately cover.
In mid-December it became known that the future head of the FCA is in favor of stricter control over the cryptocurrency sector.
