The United Kingdom government announced in a consultation paper on Monday that it will attempt to enact formal legislation for cryptocurrency activities by 2024, confirming plans to regulate the sector.
The government released a statement in response to a consultation paper that was released earlier in the year and contained suggestions for regulating the cryptocurrency sector.
According to a government report published in the Monday paper, several crypto asset operations will be subject to the same rules that apply to banks and other financial services companies.
On behalf of the Government, Andrew Griffith, The financial services minister of the United Kingdom, was delighted to present these final proposals for crypto asset regulation in the UK.
He is excited about the ongoing collaboration with the industry to realise the objective of establishing the UK as a major hub for crypto asset technology worldwide.
The government is proposing tougher regulations for cryptocurrency lending businesses, custodians (who hold cryptocurrency on behalf of clients), and exchanges.
The UK also suggests more stringent regulations for the issuance and disclosure of crypto assets as well as market abuse.
By 2024, the government hopes to present laws pertaining to the cryptocurrency sector to Parliament, as stated in the paper.
What the cryptocurrency laws in the United Kingdom will look like is currently unclear.
By enacting the MiCA (Markets in Crypto-Assets) regulation, the EU established a precise framework for digital assets, which includes a licencing procedure for cryptocurrency companies.
When it comes to this process, the UK is further ahead than other tech-leading countries. Congress is currently considering a number of bills, but the United States is lagging behind other nations in enacting official federal laws pertaining to the cryptocurrency sector.
