The UK government said it intends to bring a number of crypto asset activities under the same regulations that govern banks and other financial services firms.
The U.K. government has recently announced its plans to regulate the crypto industry with formal legislation by 2024. The government aims to protect consumers and grow the economy by ensuring robust, transparent, and fair standards for crypto activities. Some of the proposed measures include:
Regulating a broad suite of crypto activities, such as trading, lending, and custody services.
Strengthening rules for crypto trading platforms and requiring them to have admission and disclosure documents.
Introducing a crypto market abuse regime to prevent manipulation and fraud.
Enhancing oversight of stablecoins, which are digital tokens pegged to fiat currencies or other assets.
The government’s consultation paper is open for feedback until January 31, 2024.
The government said it is committed to embracing technological change and innovation, while mitigating the most significant risks posed by crypto-assets.