The new regulations would include limits on foreign companies selling into the UK, provisions for how to deal with the collapse of companies and restrictions on the advertising of products, according to the Financial Times.
The proposed regulation would come shortly after the implosion of FTX, which served to raise awareness of the risks that come with crypto transactions and the need for regulatory oversight.
In April, Rishi Sunak in his then role as Chancellor of the Exchequer spoke of making the UK a post-Brexit “crypto hub,” announcing a plan for government oversight of stablecoins and said it would consult on regulating a wider set of cryptoasset activities.
Sunak added that “effective regulation” would encourage “the businesses of tomorrow to invest, innovate and scale up on UK shores”.
The Financial Conduct Authority this year began inspecting the money-laundering controls of UK-based crypto companies. However, the watchdog currently lacks broader...