The UK government has introduced the Cybersecurity and Resilience Bill to Parliament, which aims to tighten regulation of a wider range of technology and service providers in response to growing cyber threats.
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The government introduced the Cybersecurity and Resilience Bill, extending regulation to IT management and cybersecurity providers. The bill also targets the misuse of AI, with a focus on preventing the creation of harmful content such as child sexual abuse material. Meanwhile, the UK’s Serious Fraud Office is investigating failed cryptocurrency hedge fund Basis Markets for allegedly defrauding retail investors of $28 million.
The bill would expand existing Network and Information Systems (NIS) laws to require IT management, technical support, and cybersecurity providers to meet the same security standards as critical infrastructure. Violations may result in penalties including termination of employment.
The bill is part of the UK’s strategy to strengthen network security, improve cyber incident response and protect against state-sponsored attacks such as China, Iran and North Korea. Recent research has revealed that the average cost of a major cyberattack in the UK is £190,000, with an estimated annual total of £14.7bn.
Additionally, the bill includes provisions to combat the misuse of AI, particularly preventing the creation of harmful content such as child sexual abuse material. This allows trusted organizations to test AI models for vulnerabilities before they are exploited.
This cybersecurity effort comes on the heels of a high-profile criminal investigation into Basis Markets, a failed cryptocurrency hedge fund that was accused of defrauding retail investors of $28 million.
The UK Serious Fraud Office (SFO) arrested two men in 2021 in connection with the scheme, which raised funds through the sale of unregistered NFTs and tokens. Despite billing itself as a “low-risk” crypto hedge fund, Basis Markets suddenly collapsed in 2022, leaving investors with worthless assets.
The SFO investigation into the scheme was initially quiet for more than three years, but has now escalated following recent raids and calls for investors to come forward. The investigation adds to Britain’s increasing focus on regulating the cryptocurrency sector following the conviction of Zhimin Qian, the mastermind behind a multibillion-dollar Bitcoin fraud.
The government’s efforts aim to protect citizens, businesses and public services from evolving digital threats, as the UK tightens its cybersecurity laws and goes after crypto fraudsters.
