UK Economic Secretary Andrew Griffith says the collapse of FTX and other crypto-native businesses “reinforces the case for timely, clear and effective regulation”.
Cryptocurrency exchange FTX suffered one of the fastest corporate bankruptcies in history recently despite backing from world-leading VCs and CEO Sam Bankman-Fried’s ties to Washington.
It is alleged that FTX loaned billions of dollars to sister company Alameda Research, which was effectively gambling on crypto prices, and did not possess sufficient liquidity to cover its users holdings on the exchange.
When concerns were raised about FTX, it triggered a run on the exchange which quickly led to its demise. The funds of many users have been frozen as a result.
Speaking at TheCityUK’s National Conference in Edinburgh, Griffith said: “Yes, there are questions about the future of crypto, but we’d be foolish to ignore the potential of the underlying technology.
“We’re driving forward this agenda, and I continue to chair the crypto-engagement group to hear from industry and share progress.
“The Financial Services and Markets Bill already enables us to establish a framework for regulating crypto assets and stablecoins in the UK, and we will be consulting on a world-leading regime for the rest of the crypto-asset market later this year.”