UK Treasury Unveils Crypto Asset Regulatory Framework – Here’s What You Need to Know
The UK government has issued a comprehensive response to its consultation on crypto asset regulation, unveiling a final regulatory framework based on input from businesses, experts, and significant market events, including the ongoing FTX court case.
With these proposals, the UK government is taking significant steps towards its unprecedented goal of encompassing several crypto asset activities within the regulatory framework of financial services, such as by providing firms dealing directly with UK retail consumers with authorization requirements, regardless of their location.
Treasury Minister Andrew Griffith said in the UK Treasury’s press release on Monday that the final framework, published following a crypto consultation in February which concluded in April, seeks to help the UK become a “global hub for cryptoasset technologies” while also making the UK a more appealing choice for starting and scaling cryptoasset businesses.
“The proposals plan to create the conditions for crypto asset service providers to operate and grow in the UK, whilst managing potential consumer and stability risks,” Griffith said.
The documentation outlines that firms involved in crypto asset activities will now require authorization from the UK’s Financial Conduct Authority. The authorization process will involve crypto exchanges establishing specific admission standards and necessitating full disclosures when introducing new assets.
The UK Treasury was assisted by legal and consulting firms, Crypto native firms and FinTechs, industry associations and members of the public and academia during its consultation, with Griffith acknowledging that changes were made after receiving their insight.
“While most aspects of our proposals were
Read more on cryptonews.com
