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The United Kingdom has unveiled "ambitious plans" to "strictly regulate" a variety of crypto activities, while seeking to protect clients and grow its economy. Over the next three months, the UK authorities will welcome comments from the public on new regulatory proposals to govern digital assets such as traditional finance.
The UK government is committed to regulating the cryptography market, maintaining its commitment to innovation.
The executive power in London has announced plans to regulate a wide range of crypto-related activities through new rules for the young industry that will be consistent with Britain’s regulations for the traditional financial sector.
A public consultation on the proposals has been launched and will continue until the end of April. The United Kingdom is included in the document. Treasury reaffirms its belief that “crypto technologies can have a profound impact across financial services.” The paper outlines the upcoming consultative work.
The UK government has also emphasised its regulatory approach 'mitigates the greatest risks, while taking advantage of the benefits of crypto technologies" and expressed hope that the crypto industry will be able to develop, invest, and the creation of employment. Treasury Secretary Andrew Griffith emphasized the following:
We remain committed to growing the economy and fostering technological change and innovation, including the technology of cryptoassets. However, there is also a need to protect consumers who adopt this new technology.
The draft rules are intended to guarantee that crypto exchanges "have fair and robust standards." They will be responsible for “defining the detailed content requirements for admission and disclosure documents,” an announcement revealed on Wednesday.
Officials also said they want to strengthen the rules for intermediaries and depositories that facilitate cryptocurrency transactions and store digital assets of customers. They believe that this would help establish a "world first" crypto lending regime.
The movement comes as a result of several high-profile failures which rocked crypto space, including the major crypto ftx swap. The UK government has already said that it intends to introduce rules to prevent market abuse.
Most cryptoactive companies in the United Kingdom do not receive regulatory approval.
The regulatory proposals follow last week’s announcement by the U.K.’s Financial Conduct Authority (FCA) that most entities that want to do business with crypto assets in Great Britain, 85% of all applicants, have failed to convince regulators they can meet the country’s minimum anti-money laundering (AML) requirements.
The regulator reported finding significant deficiencies in areas such as due diligence, risk assessment and transaction oversight. "in many cases, key personnel do not have the knowledge, skills and experience to perform assigned roles and effectively control risks," said caf.
Meanwhile, the House of Commons Treasury Committee continues to examine the threats and potential opportunities related to crypto assets and the need for regulation. “we are in the middle of an inquiry into crypto regulation and these statistics have not disabused us of the impression that parts of this industry are a ‘wild west,’” harriett baldwin, chairman of the select board, cited as a declarant.
In your opinion, how will future regulations from the United Kingdom affect the development of the Canadian cryptography industry? Use the comments section below to share your expectations.
