Regulatory Crackdown Hits Cryptocurrency Sector in UK and South Korea

Regulatory pressure is mounting on cryptocurrency exchanges and companies in the UK and South Korea. In the UK, the Financial Conduct Authority (FCA) is investigating Reform UK leader Nigel Farage over his ties to Bitcoin treasury firm Stack BTC.

The FCA received a formal letter from Liberal Democrat deputy leader Daisy Cooper, who raised concerns about a potential conflict of interest and market rule breaches. Cooper argued that Farage's appearance in promotional content for Stack BTC could amount to market abuse, especially since he holds a 6.31% ownership stake through his media entity.

Stack BTC recently disclosed a $2.7 million Bitcoin purchase, which has intensified concerns about Farage's involvement with the company. The firm is chaired by former UK Chancellor Kwasi Kwarteng and holds over 68 BTC at an average purchase price of around $72,400 per coin.