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UK government sets out ‘robust’ cryptoasset regulation draft

cryptoasset regulation
Image credit: Chinnapong via Shutterstock

The government will today set out plans for “robust” regulation of the cryptoasset industry, which has been the subject of repeated scandals, crashes, and uncertainty over the last year.

The Treasury said the proposal will ensure customers have their assets returned in the event of a crypto business collapsing. It comes in the wake of the high-profile crash of major crypto exchange FTX, which lost its customers billions.

The new cryptoasset regulation will also more clearly define the rules for promoting crypto ventures, which the Financial Conduct Authority (FCA) has called for in the past. Measures against crypto ‘pump and dump’ schemes and enhanced data reporting have also been included.

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.”

Prime Minister Rishi Sunak, while chancellor, previously stated his goal was to make the UK a “global cryptoasset technology hub”.

Nick Taylor, head of public policy, EMEA at the UK-based crypto firm Luno, described the rule proposals as a “pivotal moment for the crypto industry”. 

He told UKTN: “With up to 20% of UK adults holding crypto and an industry worth billions of pounds, now is the right time for the government to take action. Comprehensive regulation will drive up standards, protect consumers, and give businesses the certainty needed to invest, innovate, and create jobs in the UK.

He added: “The consultation provides an opportunity for industry players to have their voices heard and shape the industry’s future.”