The UK has set out a sweeping new regulatory regime for the cryptocurrency industry that aims to bring the rules governing the issuance, trading and lending of crypto tokens closely into line with those for traditional financial assets such as stocks and bonds.
The proposals to “robustly” regulate the sector, which are subject to a consultation, are the clearest sign yet that the government is determined to transform the UK into a hub for the crypto industry, despite a year of turmoil that saw the value of many popular crypto assets plummet and the collapse of leading crypto exchange FTX. The government’s embrace of crypto comes amid concerns that Brexit threatens London’s dominance as Europe’s leading financial centre.
“We believe that crypto technologies can have a profound impact across financial services,” said Andrew Griffith, economic secretary to the Treasury. “By capitalising on the potential benefits offered by crypto, we can strengthen our position as a world leader in fintech, unlock growth and boost innovation.”