The United Kingdom revealed its official plans to control the cryptocurrency industry, with the government taking control over some reckless business operations that started emerging in the past year and contributed to the end of FTX.
In a much anticipated consultation on Tuesday regarding the industry, the government proposed some measures to bring the regulation of crypto asset businesses into the same page as traditional financial firms.
Among the proposals revealed on Tuesday was a practice that strengthened regulations targeting financial middlemen and the custodians that keep crypto assets in the name of clients.
The big practice in the crypto verse in 2022 was the increase in risky loans made between multi crypto firms and the lack of due diligence on counterparties that related to those transactions.
The UK’s proposals would suppress those activities, trying to make the first strong regulation in the world that strengthens rules around the lending of crypto assets, while elevating consumer protection and the operational flexibility of firms, according to the statement of U.K. government on late Tuesday.