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UK sets out plans to regulate crypto assets | Money Marketing

The government has set out plans to regulate crypto assets as it seeks to provide confidence and clarity to both consumers and businesses alike.

The plans revealed yesterday (31 January) will seek to regulate a broad suite of cryptoasset activities in line with other regulated financial markets.

Under the proposals, crypto trading platforms will bear responsibility for defining the detailed content requirements for admission and disclosure documents.

The proposals will also strengthen the rules around financial intermediaries and custodians which have responsibility for facilitating transactions and safely storing customer assets.

According to the government, these steps will help to deliver a robust world-first regime strengthening rules around the lending of cryptoassets.

Proposals are centred around a number of important cryptoasset activities including exchange, custody and lending.

For each activity the consultation sets out key design features of the regime covering themes such as prudential requirements, data reporting, consumer protection, location policy and operational resilience.

The consultation paper also proposes regimes for a range of cross-cutting issues which apply across cryptoasset activities and business models including market abuse and cryptoasset issuance and disclosures.

Economic secretary to the Treasury Andrew Griffith said: “We remain steadfast in our commitment to grow the economy and enable technological change and innovation – and this includes cryptoasset technology.

“But we must also protect consumers who are embracing this new technology – ensuring robust, transparent, and fair standards.”

The consultation builds on previous Treasury proposals which focused on stablecoins and the financial promotion of cryptoassets.

The two-month consultation, on improving crypto market integrity and consumer protection, will close on 30 April.

The government will consider feedback and work to set out its consultation response.

The Financial Conduct Authority will consult on its detailed rules for the crypto sector after the required legislation has been enacted.

The Treasury is also introducing a time limited exemption to FCA authorised cryptoasset firms to issue their own promotions while the broader cryptoasset regulatory regime is being created.

Read More: UK sets out plans to regulate crypto assets | Money Marketing

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