- UK's Financial Conduct Authority says damage caused by Terra LUNA collapse calls for "non-negotiables" in crypto regulation.
- Richard Fox praised the EU's MiCA law and said that the FCA would be tough and draw a robust line in crypto regulation.
- Analysts predict a short-term bullish move in LUNA 2.0 price.
UK's Financial Conduct Authority believes the Terra LUNA collapse shows why there should be "non-negotiables" in crypto regulation. Richard Fox, the Director of International at the FCA, mentioned that regulation and consumer protection are key in crypto.
Also read: What will happen to Terra's LUNA 2.0 price after claims that Terraform Labs was behind UST collapse
UK FCA on "non-negotiables" in crypto regulation
Richard Fox spoke at a panel during Fintech Week London on July 11. Fox said,
When we look at the Terra Luna collapse, (the harm caused by it) is some people's life savings. It was a threat to life of some of the people there… [It was important to set regulatory]...non-negotiables that don't let the Terra Lunas happen.
The collapse of Terra LUNA wiped out $41 billion in market value and preceded a market-wide crypto bloodbath. Fox has emphasized the importance of regulation and consumer protection in the cryptocurrency market, arguing the importance of "non-negotiables" that would avoid another Terra LUNA-like collapse.
Fox appreciated the EU's Markets in Crypto-assets (MiCA) legislation to address concerns like money-laundering, protection of consumers and investors, accountability of crypto firms, stablecoins and the environmental footprint of crypto mining. Fox said that the EU's MiCA law covers all critical areas that the UK expects to, including disclosures and financial crime.
The UK's approach to crypto regulation has been phased, unlike the EU's early move with MiCA. Fox praised the EU and said,
We will be tough. Where we think we need to draw a robust line we will do that. But it's not one-size fits all. We are open minded.
LUNA 2.0 price could witness a bullish move
FXStreet analysts evaluated the LUNA 2.0 price trend and identified the possibility of a bullish move. However, LUNA 2.0 may be unable to sustain the uptrend in the long term. For more information and key price levels, check this video.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.