UK financial watchdog says “non-negotiable” crypto regulation a must after Terra LUNA crash

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.