“Global rules and guidelines are needed to regulate companies like Binance, as well as to keep markets “clean”, the UK Treasury wrote to Reuters on Thursday.
Cryptocompanies are largely unregulated in most of the world, but recently stricter requirements have been set to prove that companies are not involved in money laundering.
The UK Ministry of Finance wrote last week that Binance, which is one of the largest crypto exchanges in the world, is not allowed to operate in the UK because they do not have the capacity to adequately monitor the company. At the same time, countries such as Spain, France, and Italy have allowed Binance to operate.
Will protect consumers
– I think some global guidelines are very important, writes Nikhil Rathi at the UK Ministry of Finance. He believes one of the reasons why more regulation for crypto companies is important is because it will lead to increased customer protection.
– When it comes to crypto, we will always follow as an eagle to ensure that customers are adequately protected, Rathi wrote to Reuters.
The ministry had previously warned that crypto investors could lose all their money, and Rathi said that this has unfortunately become a reality for many after the recent crash.
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