“Global rules and guidelines are essential to regulating companies like Binance, as well as to keep markets clean,” Britain’s Treasury wrote to Reuters on Thursday.
Crypto companies are mostly unregulated in large parts of the world, but recently more stringent requirements have been put in place to prove that companies are not involved in money laundering.
The UK Ministry of Finance wrote last week that Binance, one of the world’s largest cryptocurrency exchanges, is not allowed to operate in the UK because it does not have the ability to adequately monitor the company. Meanwhile, countries such as Spain, France and Italy have allowed Binance to operate.
will protect consumers
I think some global guidelines are crucial, writes Nikhil Rathi of the UK Treasury. He believes that one reason why more regulation of crypto companies is so important is that it will lead to increased customer protection.
“When it comes to cryptocurrencies, we will always follow as a hawk to ensure that customers are adequately protected,” Rathi writes to Reuters.
The ministry had previously warned that crypto investors could lose all their money, and Rathi says this has unfortunately become a reality for many after the recent crash.
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