The UK government has detailed “bold” plans to regulate the crypto business, with proposals on stronger guidelines for buying and selling platforms, crypto lending, new token points and extra. The aim, it says, is to defend shoppers and companies, whereas enabling “a brand new and thrilling sector to safely flourish and develop,” it wrote in a press release.
Last yr noticed the fall of FTX, Celsius and different crypto exchanges, together with wildly fluctuating costs for Bitcoin, Ethereum and different cryptocurrencies. As a consequence, critics within the UK have been calling for brand new guidelines that defend shoppers from the “crypto wild-west,” because the opposition Labour get together’s Tulip Siddiq put it.
The UK government plans to strengthen guidelines across the operation of crypto buying and selling corporations like FTX, together with different monetary intermediaries. The major intention, it wrote, is to improve client safety and the power of exchanges to climate storms. As a part of that, it is proposing what it calls a “crypto market abuse regime” that might create guidelines round cash laundering and different unlawful schemes. It additionally plans to strengthen legal guidelines round cryptocurrency lending.
At the identical time, the treasury division is introducing a time-limited exemption that might permit designated crypto corporations to difficulty new tokens. Companies registered with the UK’s Financial Conduct Authority (FCA) for anti-money laundering functions could be allowed to difficulty cash whereas the brand new rules are written.
In January 2022, the UK government promised a crackdown on deceptive crypto adverts, however that now appears quaint given the tumultuous yr that adopted. At the time, the government figured that round 2.3 million folks within the nation owned a cryptoasset.
Today’s proposal “delivers on the unique coverage intention of the measure to promote innovation, improve client safety and be sure that cryptoasset promotions will be held to equal requirements as promotions of economic providers merchandise with related danger profiles,” the government mentioned. The session will shut on April thirtieth, 2023, at which level regulators will assessment suggestions and formulate a response.