UK Government’s goal is to regulate crypto with stronger rules and to safeguard consumers as well as businesses, as they said in the press release.
Along with the collapse of FTX, Celsius, and other cryptocurrency exchanges last year, the values of Bitcoin, Ethereum, and other cryptocurrencies saw extreme price swings. As a result, detractors in the UK have pushed for tougher regulations to shield consumers from the “crypto wild-west,” as Tulip Siddiq of the opposition Labour party described it.
UK’s Crypto Regulations
Along with other financial intermediaries, the UK government intends to tighten regulations governing the operation of cryptocurrency trading companies like FTX. It stated that the main goals were to strengthen consumer protection and the resilience of exchanges.
In order to do so, it is putting up what it terms a “crypto market abuse regime” that would establish guidelines for dealing with money laundering and other illicit activities. Additionally, it intends to make bitcoin lending restrictions more stringent.
- UK Government’s goal is to regulate crypto with stronger rules and to safeguard consumers.
- Last year saw the fall of some crypto exchanges along with extreme price swings to the cryptocurrencies.
- A temporary exception would permit specific crypto businesses to launch new coins.
The treasury department is also introducing a temporary exception that would permit specific crypto businesses to launch new coins.
While the new laws are being developed, businesses that have registered with the UK’s Financial Conduct Authority (FCA) for anti-money laundering purposes are permitted to create coins.
The UK government pledged in January 2022 to tighten down on deceptive cryptocurrency advertisements, but considering the turbulent year that followed, it now sounds quaint. The government estimated that 2.3 million people in the nation had crypto assets at the time.
“The government said last week’s proposal met its original policy intention of promoting innovation, improving consumer protection, and ensuring crypto-asset promotions are held to the same level of scrutiny as those for financial services products with similar risk profiles,” according to the government.
After the consultation ends on April 30th, 2023, regulators will analyse the comments and decide how to respond.
