The UK has published its first consultation on cryptocurrency trading and lending regulation within the country.
The UK has published its plans to regulate the cryptocurrency industry within the country.
He advertisement highlights that “high levels of volatility and a series of recent failures have exposed the structural vulnerability of some business models in the sector”, among other reasons, have led to the new set of regulatory guidelines.
Focusing specifically on trading and lending, the report outlines how the UK government “will seek to regulate a broad set of crypto-asset activities, consistent with its approach to traditional finance.” It details how the proposals will assign responsibility to cryptocurrency exchanges and companies to define detailed content requirements for disclosure documents, ensuring “fair” standards. To ensure the safety of client funds, the consultation will seek to create a framework with clear guidelines for responsible practices.
“We remain steadfast in our commitment to growing the economy and enabling technological change and innovation, and this includes crypto-asset technology,” said Treasury Economic Secretary Andrew Griffith.
The consultation also highlighted the need for cryptocurrency custodial agents and intermediaries to responsibly facilitate transactions and securely store client assets. This is especially important in light of recent events across the cryptocurrency space that have left millions of customers without access to their funds.
Today’s consultation will conclude on April 30, 2023, after which the government will consider the comments and create a response. “Once the legislation is in place, the Financial Conduct Authority will consult on its detailed rules for the sector,” the announcement reads.
