In order to stop market abuses, the UK has announced measures to regulate the cryptocurrency industry and implement a “world-first regime.”
The new strategy for cryptocurrency legislation, according to the government, would also seek to expand the economy and promote innovation in the budding industry. Although they won’t release specifics until Wednesday, ministers hope to bring cryptocurrency closer to the rules governing how traditional financial institutions operate.
The Treasury stated in a statement that its new “strong approach” to regulating the industry will reduce “the most serious risks” while also enabling the UK to benefit from crypto innovations.
The decision was made following a string of high-profile global failures that shook the cryptocurrency sector, including the demise of the top bitcoin exchange FTX.
According to the Treasury, it “will strive to regulate a broad array of crypto-asset activities,” adhering to its strategy for traditional finance.
The task of “setting the detailed content criteria for admission and disclosure documents” will fall to cryptocurrency trading platforms.
The Treasury claimed that by doing this, “crypto exchanges will have fair and robust rules.” Additionally, it declared that it will tighten regulations governing custodians and financial intermediaries.
The Treasury stated that the consultation would “seek opinions on how to improve market integrity and consumer protection by setting out a proposed crypto market misuse framework.
The Treasury announced that the full details of the consultation will be released on Wednesday morning.
This year’s consultation is open through April 30.
Instead of more discussions, Labour demanded urgent action.
Labour has been pressing for a crackdown on the crypto wild-west for months, said shadow city minister Tulip Siddiq. We need to take action right away, yet all the Conservatives are pledging is more consultations.
The collapse of cryptocurrencies under this inept government has put the savings of millions of British customers in danger, and crypto-related scams have reached record highs. The Conservatives yet continue to support cryptocurrency hoaxes.
“We remain committed in our commitment to expand the economy and encourage technological change and innovation, and this includes crypto-asset technology,” said Andrew Griffith, the economic secretary to the Treasury.
But we also need to safeguard consumers who are utilizing this new technology by establishing strong, open, and equitable norms.
