Treasury finalises plans to regulate crypto industry
The Treasury also declined to regulate decentralised finance (DeFi) in this phase of regulation, saying it would be 'premature and ineffective'.
Following a consultation, the Treasury issued a report today (30 October) detailing the responses and updated changes to a proposed wide-ranging set of regulation.
The regulations, which have a focus on stablecoins and the financial promotion of cryptoassets, will be broken into two parts, with secondary legislation presented to parliament next year.
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Firms undertaking cryptoasset activities will now have to be authorised by the Financial Conduct Authority, which will include requirements for crypto exchanges to create detailed requirements for admission standards and mandate disclosures when listing new assets.
«The government's position is that firms dealing directly with UK retail consumers should be required to be authorised irrespective of where they are located,» the report said.
The Treasury also declined to regulate decentralised finance (DeFi) in this phase of regulation, saying it would be «premature and ineffective».
Albert Weatherill, financial services regulatory partner at Norton Rose Fulbright, noted there were still «many unknowns» in the regulation, such as when the regulations will come into force and how applicants are able to get authorised to partake in crypto-related activities.
«The key challenge for the regulators is to provide this certainty as soon as possible, such that the industry can begin to adapt to its new regulatory reality,» he added.
The regulation is part of a broader goal of prime minister Rishi Sunak to make the UK a global crypto hub, having previously advocated for
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