Regulation News
- UK regulators are inspecting the Terra fallout.
- Regulators are also questioning the market fall in general.
- The examinations came as a start to set new crypto-related rules.
The UK market regulators are paying closer attention to the Terra (LUNA) fall that happened during the market’s latest dip. The dip drove Bitcoin to reach around $26K, and Luna to fall by almost 100%.
Regulators are also taking a close look at the market in general, as they are examining the crypto market to set new rules and develop regulations.
Sarah Pritchard, Executive Director for Markets at the Financial Conduct Authority, commented on the news by saying that the latest market instability in stablecoins “will absolutely need to be taken into account” as they start working to develop and implement new rules for crypto assets later this year.
Pritchard added,
Innovation lasts if it works well, and clearly, we’ve seen the consequences and some of the issues that can arise.
She also said that nearly 70% of adults who are 40 years old or younger have bought crypto assets while assuming that they were regulated. Pritchard’s comments came during the wake of the fallen stablecoin Terra (LUNA) and its sister coin TerraUSD (UST).
“In the last week where we saw significant price movements, it brings that into the fore and it shows the importance of making sure that people understand that that is a risk of where they put their money,” Pritchard said regarding crypto’s riskiness.
The Treasury said in April that it plans to examine the crypto market’s state to develop new regulations that include stablecoins issuing and wallets provision. The UK watchdog is set to gain new power given to them by the Treasury to handle crypto assets regulation later this year, while we wait for further details to be announced in the upcoming Financial Services and Markets Bill.
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