• The United Kingdom has released its plans to regulate the cryptocurrency industry within the country in order to protect customers and ensure fair standards.
• The new set of regulations will focus on trading and lending, requiring firms to create disclosure documents that adhere to “fair” standards.
• Cryptocurrency custodial actors and intermediaries are also mentioned in the consultation as a way of ensuring customer funds are safely stored.
United Kingdom Announces Plans To Regulate Crypto Industry
The United Kingdom has released its plans to regulate the cryptocurrency industry within the country. This announcement aims to protect customers and ensure fair standards among cryptocurrency exchanges and firms.
Focus on Trading & Lending
The new set of regulatory guidelines will specifically focus on trading and lending, requiring firms to define detailed content requirements for disclosure documents that adhere to “fair” standards. This is meant to enable technological change and innovation while also protecting customer funds from fraudulent activities.
Responsible Practices Necessary
In order to ensure the safety of customer funds, responsible practices must be put into place by cryptocurrency custodial actors and intermediaries who facilitate transactions and store assets securely. This consultation seeks to create a framework with clear guidelines for these practices.
Deadline for Consultation
The consultation will conclude on April 30th, 2023, after which the government will consider feedback and create a response. Once legislation is laid out, the Financial Conduct Authority will consult on its detailed rules for the sector.
Economic Secretary’s Remarks
Economic Secretary to the Treasury Andrew Griffith commented that this move is meant to grow the economy while also allowing room for technological change and innovation in regards to cryptoasset technology.