Regulates various cryptographic activities. Within the next three months, UK authorities will be open to public feedback on proposed new regulations designed to govern digital assets such as traditional finance.
UK Government Begins to Regulate Crypto Markets, Continues Commitment to Innovation
London Executive Plans to Regulate Wide Range of Crypto-Related Activities Through New Regulations announced a young industry in line with UK regulations for the traditional financial sector.
A public consultation on the proposal has begun and will continue until the end of April. In a published paper, the UK Treasury reaffirms its belief that cryptography could have a significant impact on financial services as a whole. This document provides an overview of future consultation work.
The UK government has also advocated an approach to regulation that “captures the benefits of cryptography while mitigating the most significant risks” and encourages the expansion of the crypto industry. expressed the desire to enable Invest and create jobs. Treasury Secretary Andrew Griffiths emphasized:
We remain steadfast in our commitment to growing our economy and enabling technological change and innovation. also includes cryptocurrency technology. But we must also protect the consumers adopting this new technology.
The draft rules are intended to ensure that cryptocurrency exchanges “have fair and robust standards.” They will be responsible for “defining detailed content requirements for admissions and disclosure documents,” in a announcement revealed Wednesday.
Officials also said they want to strengthen rules for intermediaries and custodians who facilitate cryptocurrency transactions and store customers’ digital assets. They believe this will help establish a “world first regime” for cryptocurrency lending.
The move comes in the aftermath of several high-profile failures that have rocked the crypto industry, including the collapse of major crypto exchange FTX. The UK government has previously said it intends to adopt regulations to prevent abuse of the market.
The majority of UK crypto firms have not received regulatory approval. following the announcement of Most companies wishing to trade crypto assets in the UK – 85% of all applicants – are able to convince regulators that they can meet the country’s minimum anti-money laundering (AML) requirements. I could not do it.
The regulator said it had identified significant failures in areas such as due diligence, risk assessment and transaction surveillance. “Key personnel often lacked the appropriate knowledge, skills and experience to fulfill their assigned roles and effectively manage risks,” he said.
Meanwhile, the House Finance Committee continues to examine potential threats and opportunities, as well as regulatory needs, related to crypto-assets. Harriet Baldwin, chair of the selection committee, said: “We are in the midst of a study on cryptocurrency regulation and these statistics negate the impression that parts of this industry are in the ‘wild west’. I haven’t,” he said.
Image Credits: Shutterstock, Pixabay, Wiki Commons