Government Promises Crypto Regulation to Make Sector Safer for Retail Investors
Ministers aim to bring the sector closer to the regulations that govern the operation of traditional financial institutions, but will not release details until Wednesday.
In a statement, the Treasury said its new “robust approach” to regulating the sector will mitigate “the most significant risks”, but also enable the UK to reap the benefits of crypto technologies.
The move comes after a series of high-profile global failures rocked the relatively new and booming sector.
The Treasury said it will “seek to regulate a broad range of crypto-asset activities”, in a manner consistent with its approach to traditional finance.
Crypto trading platforms will be responsible for “defining detailed content requirements for admission and disclosure documents.”
This, the Treasury said, would ensure that “crypto exchanges have fair and robust standards.”
He also said he would strengthen the rules regarding financial intermediaries and custodians.
“The consultation will seek views on improving market integrity and consumer protection by establishing a proposed crypto market abuse regime,” the Treasury said.
Economic Secretary to the Treasury, Andrew Griffith, said: “We remain true to our commitment to growing the economy and enabling technological change and innovation – and that includes crypto-asset technology.
“But we also need to protect consumers who embrace this new technology – ensuring strong, transparent and fair standards.”
Full details of the consultation will be released on Wednesday morning, the Treasury said.
The consultation will continue until April 30 this year, the Treasury said.
Labor called for immediate action rather than more consultation.
Ghost town minister Tulip Siddiq said: “Labour has been calling for a crackdown on crypto farwest for months. All the Conservatives are promising is further consultation – we need to act now.
“Under this incompetent government, the savings of millions of UK consumers have been put at risk by the collapse of cryptocurrencies while crypto-related scams have reached record levels. cryptocurrency gadgets.
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