UK plans to regulate crypto and protect consumers

The UK government announced today its plans to protect consumers and grow the economy by robust regulation of cryptoasset activities. A public consultation was published today as first steps in crypto legislation.

The government has set out to grow the economy and embrace the innovation that comes with crypto technology, as well as protect consumers better.

Economic Secretary to the Treasury, Andrew Griffith said:

We remain steadfast in our commitment to grow the economy and enable technological change and innovation – and this includes cryptoasset technology.

But we must also protect consumers who are embracing this new technology – ensuring robust, transparent, and fair standards.

The official announcement further pointed out that crypto assets are relatively new and constantly evolving and as a new sector it continues to experience high volatility levels. Furthermore, the recent failures of high-profile companies following the collapse of FTX have “exposed the structural vulnerability of some business models in the sector.”

The announcement stated:

Our robust approach to regulation mitigates the most significant risks, while harnessing the advantages of crypto technologies. This enables a new and exciting sector to safely flourish and grow, boosting jobs and investment.”

However, crypto regulation in the UK does not have a set date yet. The consultation launched on 1 February will run until 30 April. The government will then review the feedback and prepare a response. Once there is prepared legislation, the Financial Conduct Authority will consult the industry on detailed rules for the sector.

Read Also: