What happens if crypto markets collapse in the UK?

In the event of a crypto market collapse in the UK, the implications could be far-reaching. Firstly, investors who have significant holdings in cryptocurrencies could face significant financial losses, potentially eroding their portfolios and affecting their overall financial stability. Secondly, the wider financial system may also be impacted, as banks and other financial institutions that have exposure to cryptocurrencies could potentially suffer losses, reducing their ability to lend and providing services. Additionally, a crypto market collapse could also have psychological effects on investors and the general public, potentially leading to a loss of confidence in the financial system and markets. This could further exacerbate the downturn, creating a vicious cycle of declining asset prices and reduced investor sentiment. What measures do you think the UK government and regulators should take to mitigate the risks posed by a potential crypto market collapse? How should investors prepare for such an event?