The United Kingdom has confirmed its plans to regulate cryptoassets and crypto businesses within its jurisdiction, underscoring the government’s intention to make the UK a global centre for cryptocurrency technologies.
In response to the UK government’s consultation on the future financial services regulatory framework for cryptoassets, the government released the final proposals for crypto regulations in the UK on Monday.
Presented by the Economic Secretary of the Treasury Andrew Griffith, the UK government plans to bring crypto under stricter rules starting in 2024. Accordingly, this expected development would bring crypto activities in line with other traditional asset classes.
The second-largest global financial centre aims to give crypto companies a clear and level playing field for innovation as well as ensure the protection of customers or cryptocurrency users.
In the words of Griffith: “The government’s ambition to make the UK a global hub for cryptoasset technologies remains steadfast. To realise this ambition we must make the UK a place where cryptoasset firms have the clarity needed to invest and innovate, and where customers have the protections necessary for confidently using these technologies.”
UK Crypto Regulation
According to the HM Treasury report, the UK government is resolved to regulate core activities in the crypto industry including custody and lending. Likewise, centralized cryptocurrency exchanges operating in the UK would be brought into the nation’s financial services regulation.
This could help in curbing issues such as the commingling of customer funds or assets and scams. Notably, while the UK intends to proceed with crypto regulation in 2024, the government is yet to disclose a finalized approach.
“To avoid committing to bespoke disclosure requirements too early, and to mitigate the risk of an un-level playing field, further exploratory work on whether existing frameworks and indicators could be applied will be undertaken,” part of the HM Treasury report read.
The crypto-friendly government further noted that it will continue to monitor developments in the crypto industry to decide whether or not to develop a bespoke regulatory regime for the cryptocurrency market.