UK to Launch New Regulation to Tame "Wild West" of Crypto; Getir to Acquire Sinking Rival Gorillas

by Hannah Dillon on 6th Dec 2022 in News

In today's ExchangeWire news digest: the UK government finalises new regulation to control the cryptocurrency industry; Getir prepares to acquire competitor firm Gorillas; and crypto giant Circle cancels its USD$9bn (~£7.34bn) deal to go public.

UK government finalises plans to tame crypto sector

The UK Treasury is completing plans for sweeping regulation to control the cryptocurrency industry. The rules, which include restrictions on international companies selling within the UK, limitations on product advertising, and guidelines on how to handle the collapse of companies, come in the wake of the bankruptcy of currency exchange FTX.

Ministers are preparing to open consultations on the new regulations, with the intent to bring cohesion to the “Wild West” of finance.

Getir to purchase rival Gorillas

Spiralling food delivery firm Gorillas has finally found a saviour in Getir, which is set to purchase its competitor in an all-stock deal. Under the agreement, Gorillas' investors will fund the company with an additional USD$100m (~£81.5m) to keep it afloat ahead of the acquisition.

Should the deal close it would end long-running negotiations between the two grocery delivery companies, with previous reports suggesting Getir would have offered Gorillas’ shareholders an alternative deal of USD$100m (~£81.5m) in cash and single-digit equity in the company.

Circle ends IPO through Concord

Crypto giant Circle Internet Financial has announced it will end its USD$9bn (~£7.34bn) deal to go public through Concord Acquisition Corporation. The agreement with the blank-cheque company, which is chaired by former Barclays chief executive Bob Diamond, was initiated in July of 2021 and amended earlier this year. Successive crises across cryptocurrency, notably the collapse of FTX, are strongly believed to have contributed to the crumbling of the deal.

Jeremy Allaire, CEO and co-founder of circle said, “We are disappointed the proposed transaction timed out, however, becoming a public company remains part of Circle’s core strategy to enhance trust and transparency, which has never been more important.”