The British government has announced its intentions to regulate cryptoassets and secure customers. These proposals aim to implement the government’s financial services roadmap while balancing innovation and economic growth with safeguarding customers from the dangers linked to cryptoassets.
The proposed regulations involve strengthening the guidelines for cryptocurrency trading platforms and creating a world-first regime for cryptocurrency loans. The government intends to monitor various cryptoasset activities consistent with their traditional finance regulations, obligating cryptocurrency trading venues to define in-depth content requirements for disclosure and admission documents, ensuring fair and robust standards are maintained.
The proposals also include increasing customer protection and operational firm resilience by solidifying the rules for financial intermediaries and custodians who conduct transactions and store consumer assets. Additionally, the government is looking into ways to enhance market integrity and customer protection by proposing a crypto market abuse regime.
To address concerns in the industry about the limited number of authorized cryptoasset firms permitted by the Financial Conduct Authority (FCA) to promote their own products, the HM Treasury has established a time limited exemption. This exemption permits cryptoasset firms registered with the FCA for anti-money laundering purposes to promote their own products while the comprehensive regulatory framework for cryptoassets is established.
The aproposed regulations aim to mitigate the most significant risks related to cryptoassets while harnessing the benefits of crypto technologies. They will create a safe environment for an exciting new industry to thrive, stimulate job growth and investment, and provide customers and businesses with confidence and clarity.
The UK’s ambitious approach to regulating cryptoassets is paving the way for a secure and prosperous future.
Read more here – https://www.gov.uk/government/news/uk-sets-out-plans-to-regulate-crypto-and-protect-consumers
