Regulation
UK confirms plans to regulate crypto industry with formal legislation
Bitcoin, the world’s largest cryptocurrency, saw a stealth rise in 2023.
Chris Ratcliffe | Bloomberg | Getty Images
The UK government confirmed its intention to regulate the cryptocurrency sector on Monday, announcing in a consultation paper that it would seek to introduce formal legislation for cryptocurrency activities by 2024.
The government has published its response to a consultation document published earlier this year, which recommendations outlined on regulating the crypto industry.
In Monday’s paper, the government said it intends to subject a number of crypto-asset-related activities to the same regulations that govern banks and other financial services companies.
“I am very pleased to present these final proposals for the regulation of crypto-assets in the UK on behalf of the Government,” Andrew Griffith, the UK’s financial services minister, said in a statement.
“I look forward to our continued work with the sector to make our vision a reality for the UK as a global hub for crypto-asset technology.”
The government’s proposals include stricter rules for exchanges, custodians that store crypto on behalf of clients, and crypto lending companies.
The UK also offers stricter regimes for market abuse and the issuance and disclosure of crypto-assets.
The government aims to introduce laws on the crypto industry to Parliament by 2024, according to the newspaper.
At this stage, it is not yet clear what UK crypto laws will look like.
The EU has established a clear framework for digital assets with its MiCA (Markets in Crypto-Assets) regulation, including a licensing process for crypto companies.
The UK is further along in this process than other technology-leading countries. There are numerous bills working their way through Congress, but the United States is far behind others when it comes to passing formal federal laws for the crypto industry.