The UK Government Has Announced Plans To Regulate The CryptoAsset Industry

　　The UK government has proposed bringing cryptocurrency assets under the same regulatory structure as conventional financial services.

　　In April, the UK government committed to implementing legislation that would establish the country as a worldwide center for crypto asset technology.

　　Proposals for consultation include tightening laws for crypto trading platforms and creating a “strong world-first” system for crypto loans by tightening rules for financial intermediaries and custodians.

　　The consultation outlines the regime's core design elements, including prudential standards, data reporting, consumer protection, location policy, and operational resilience.

　　The study also suggests regimes for a variety of cross-cutting concerns that apply to all crypto-asset activities and business models, such as market abuse and crypto-asset issuance and disclosures.

　　The consultation is being held at a time when the crypto industry is still experiencing significant levels of volatility, and a number of recent failures have shown the fundamental fragility of various business models in the sector.

　　According to the government, the consultation will seek feedback on how to improve market integrity and consumer protection by laying out a proposed crypto market abuse regime.

　　“We remain committed in our commitment to expand the economy and encourage technological change and innovation - and this includes crypto asset technology,” says Andrew Griffith, Economic Secretary to the Treasury.

　　“However, we must also safeguard consumers who are using this new technology by enforcing strong, transparent, and equitable norms.”

　　As a first step, the government intends to include crypto-asset promotion within the scope of financial promotions law, subject to FCA regulation in accordance with the same requirements that apply to stocks, shares, and insurance products.

　　“This approach delivers on the measure's initial policy goal to stimulate innovation, strengthen consumer protection, and guarantee that crypto-asset marketing may be held to the same standards as advertising of financial services products with comparable risk profiles,” the paper said.

　　The consultation will end on April 30, and the responses will be included in the legislative process. Following the passage of legislation, the Financial Conduct Authority will consult on the sector's particular regulations.

　　Install the WikiFX App on your smartphone to keep up to speed on current events.

　　Link to the download: https://www.wikifx.com/en/download.html？source=fma3