UK Government promises robust crypto regulation
Ministers want to make the UK a crypto hub, By Tom Singleton, Technology team
The government has published proposals for crypto-asset regulation it hopes will "manage" the risks of the "turbulent industry".
The sector has had a calamitous year, with assets collapsing in value by an estimated 75% from their peak of about $3 trillion in November 2021.
Ministers estimate up to 10% of UK adults now own some form of crypto. They plan to use existing regulations for the industry, rather than creating a bespoke regime.
The Treasury says that will allow crypto to benefit from the "confidence, credibility and regulatory clarity" of the existing system for financial services, as set out in the UK's Financial Services and Markets Act 2000 (FSMA).
It wants to create a level playing field between traditional and emerging financial services, where the principle is "same risk, same regulatory outcome". But it also acknowledges some crypto businesses may simply choose to continue operating in offshore jurisdictions that "do not impose equivalent market-abuse rules".
'Fair standards'
The Treasury says its proposals - which it's now consulting on - will:
- lay down rules on crypto-asset promotions which are fair, clear and not misleading
- enhance data-reporting requirements, including with regulators.
- implement new regulations to prevent so-called pump and dump, where an individual artificially inflates the value of a crypto asset before selling it.
Ministers say the measures will "mitigate the most significant risks" of crypto technologies, while "harnessing their advantages". Economic Secretary to the Treasury Andrew Griffith said the government remained "steadfast in our commitment to grow the economy and enable technological change and innovation - and this includes crypto-asset technology".
"But we must also protect consumers who are embracing this new technology - ensuring robust, transparent and fair standards," he added. ... '
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