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The United Kingdom Department of Finance is proposing new rules to govern multiple sectors of the crypto industry and is seeking stakeholder input.
The hotly anticipated consultation, to be published by His Majesty’s Treasury on Wednesday, asks for feedback from industry members and experts on rules that focus on protecting consumers that also align with the country’s ambition to become a hub for crypto.
Certain proposals will make trading venues more accountable, like crypto trading, define and detail the conditions under which documents are admitted and disclosed, Treasury declared in a press release.
The proposed rules also target financial intermediaries such as depositories and are aimed at implementing a cryptoasset lending regime. Treasury is seeking input on an anticipated market abuse regime to enhance market integrity, consumer protection and business operational resilience. The consultation also provides supervisory and data reporting requirements for crypto firms.
Regulators around the world are calling for more rules for the crypto industry in the aftermath of the collapse of crypto exchange stablecoin issuer Terra that sent ripples through the industry.
"We remain committed to growing the economy and driving technological change and innovation, including cryptoassets," said Andrew Griffith, treasurer's economic secretary, According to the press release. But we also need to protect consumers who adopt this new technology, by guaranteeing strong, transparent and fair standards."
Meanwhile, the U.K. is trying to catch up with the European Union, which is in the last stages of approving its landmark Markets in Crypto Asset regulation that focuses heavily on stablecoins and will set up a licensing regime for service providers.
The U.K.'s wide-ranging Financial Services and Markets Bill, which could give crypto regulators more powers of oversight, is being debated in Parliament and is expected to be finalized by April.
The local cryptography industry was expecting clarification on how to operate in the meantime. Industry raised concerns about how they should manage crypto promotions and advertising – which, according to future rules, was not permitted without approval.
In the advertisement on Tuesday, the treasury said that it is introducing a “time limited exemption” that will enable crypto asset businesses that are registered with the u.k.'s financial regulator under its anti-money laundering regime to issue their own promotions while the industry awaits more rules.
Consultations will continue until April 30, at which time the Government will take the feedback and work to prepare its response.
