• The UK government has released a set of regulatory guidelines to regulate the cryptocurrency industry.
• These guidelines will focus on trading and lending and require firms to create disclosure documents that meet “fair” standards.
• The consultation will end on April 30, 2023, after which the Financial Conduct Authority will consult on its detailed rules for the sector.
The United Kingdom’s government has released its plans to regulate the cryptocurrency industry within the country due to high levels of volatility and a number of recent failures that have exposed the structural vulnerability of some business models in the sector.
In order to ensure the safety of customer funds, the consultation will seek to create a framework with clear guidelines for responsible practices. The proposal places responsibility on exchanges and firms to define detailed content requirements for disclosure documents, ensuring “fair” standards. Furthermore, it highlights the necessity for cryptocurrency custodial actors and intermediaries to responsibly facilitate transactions and safely store customer assets.
April 30 Deadline
The consultation will conclude on April 30, 2023 after which the government will consider feedback and create a response. Once legislation is laid out, the Financial Conduct Authority will consult on its detailed rules for the sector.
Commitment To Growth
Economic Secretary to the Treasury Andrew Griffith commented that “We remain steadfast in our commitment to grow the economy and enable technological change and innovation – including cryptoasset technology.”