Treasury sets out crypto regulation plans

The UK government has detailed its plans to regulate cryptoasset activities, promising a broad approach that is consistent with its approach to traditional finance, and which “mitigates the most significant risks, while harnessing the advantages of crypto technologies”.

The proposals will place responsibility on crypto trading venues for defining the detailed content requirements for admission and disclosure documents. They will also look to strengthen the rules around intermediaries and custodians. These steps, it says, will also help support firms’ operational resilience.

The consultation will also seek views on improving market integrity and consumer protection by setting out a proposed crypto market abuse regime.

It is also understood that the Treasury is introducing a time limited exemption. Cryptoasset businesses that are registered with the FCA for anti-money laundering purposes will be allowed to issue their own promotions, while the broader cryptoasset regulatory regime is being introduced.

Economic secretary to the Treasury, Andrew Griffith said: “We remain steadfast in our commitment to grow the economy and enable technological change and innovation – and this includes cryptoasset technology.

“But we must also protect consumers who are embracing this new technology – ensuring robust, transparent, and fair standards.”

The consultation will close on 30th April 2023, after which, the government will consider feedback and work to set out its consultation response. Once legislation is laid, the Financial Conduct Authority will consult on its detailed rules for the sector.

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