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UK Brings New Regulations for Cryptocurrencies

uk brings new regulations for cryptocurrencies

His Majesty’s Treasury calls on industry members and experts to provide their opinions on upcoming cryptocurrency sector regulations. These proposed rules are designed to ensure consumer protection while advancing the U.K.’s goal of becoming a global hub for cryptocurrency innovation.

The Proposed Regulation Aims for a More Transparent, Safer Trading Environment

According to the Treasury’s declaration, specific proposals will require trading venues like cryptocurrency exchanges to spell out more precise regulations for admission and disclosure documents.

The Treasury strives to create a regime that would protect consumers, promote operational resilience for firms, and bolster market integrity with the proposed rules concerning financial intermediaries, such as custodians, aimed at regulating crypto-ass lending. Additionally, they seek feedback on their plans to develop a market abuse regime. They’ve added prudential regulations and data reporting requirements for cryptocurrency businesses into this consultation document.

After the disintegration of crypto exchange FTX and Terra, a stablecoin provider, regulators globally are demanding further regulations for the digital asset space. This event has sent shockwaves through that industry as a whole.

The Treasury’s Economic Secretary, Andrew Griffith, proclaimed that “we are unwavering in our desire to expand the economy and embrace new technological developments such as cryptocurrencies. It is equally important for us to protect consumers who use this technology by setting up stringent but fair standards of transparency.”

uk brings new regulations for cryptocurrencies

The UK Is Trying To Keep Up With The European Union Regulations

The U.K. is striving to keep pace with the European Union, which has nearly completed voting on its groundbreaking Markets in Crypto Asset regulations that focus mainly on stablecoins and offer licensing conditions for service providers.

The monumental Financial Services and Markets Bill of the U.K., which could provide cryptocurrency regulators with more oversight powers, is currently being deliberated in Parliament and is projected to be completed by April. As a result of Tuesday’s proclamation from The Treasury, a “time-limited exemption” was implemented to enable businesses registered under the U.K.’s financial regulator for anti-money laundering functions to issue their promotions while awaiting further regulations in the industry.

The consultation period will end on April 30th, when the government will evaluate all feedback and craft a response.

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