The UK government will publish new rules governing the digital-asset industry, affecting the sales and marketing of products, according to sources Financial Times.
In particular, FCA will be given powers to restrict advertising by overseas organisations.
The regulator will also be able to broaden its monitoring of industry participants to protect consumers from fraud and abuse.
The proposals will complement the Financial Services and Markets Bill, which is before Parliament. Its provisions include, among other things, stablecoins and other crypto assets.
The Block quoted the view of CryptoUK chief Ian Taylor. The specialist called FTX collapse as an example of the risk arising from the lack of a proper regulatory framework for crypto trading venues and service providers.
FT sources suggested that the timetable for launching consultations could be moved to early 2023 due to rapidly changing events in the industry.
The newspaper cited data from the regulator showing that 85% of applicants seeking inclusion on the crypto firms register failed the anti-money-laundering test.
Earlier, Deputy Governor of the Bank of England John Cunliffe proposed regulating digital assets in line with traditional finance. Previously the Bank of England presented an approach to regulating cryptocurrencies focusing on future risks to financial stability.
The EU plans to allow member states to block advertising and websites of unauthorised organisations linked to digital assets.
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