UK reveals crypto regulation plans
The Government plans to “set out ambitious plans” to fully regulate cryptoasset activities. This includes “strengthening” rules for crypto trading platforms and enacting a “robust world-first regime” for crypto lending.
The UK government has set out its intention to regulate the ‘crypto asset’ market.
Regulation of crypto has long been expected, with calls growing stronger in the past year as the UK set out ambitions to become a leading global crypto hub in April 2022 and then, subsequently, for the market to be hit a series of major scandals in the second half of last year.
“We remain steadfast in our commitment to grow the economy and enable technological change and innovation – and this includes cryptoasset technology,” said Economic Secretary to the Treasury Andrew Griffith.
“But we must also protect consumers who are embracing this new technology - ensuring robust, transparent, and fair standards,” he added.
The Government plans to “set out ambitious plans” to fully regulate cryptoasset activities. This includes “strengthening” rules for crypto trading platforms and enacting a “robust world-first regime” for crypto lending, the process whereby investors can earn a financial return on assets.
It added that new rules will focus on regulating a “broad suite of crypto asset activities”, that will be consistent with its approach to traditional finance.
“These proposals will place responsibility on crypto trading venues for defining the detailed content requirements for admission and disclosure documents - ensuring crypto exchanges have fair and robust standards,” a government statement said.
Strengthening financial intermediaries' and custodians' rules will be central to the proposals.
In addition, crypto asset businesses that are currently registered with the FCA for anti-money laundering purposes will be allowed to issue their own promotions, ahead of the broader cryptoasset regulatory regime being introduced.
“This approach delivers on the original policy intention of the measure to promote innovation, enhance consumer protection and ensure that crypto asset promotions can be held to equivalent standards as promotions of financial services products with similar risk profiles,” the statement added.