His Majesty’s Treasury Plans to Regulate UK Crypto Industry
Regulators in the UK Treasury confirm issuing a consultation document that will guide in regulating crypto firms. The consultation paper posted on February 1 on the His Majesty’s Treasury website reveals plans to safeguard consumers in the crypto sector. The regulators urge the crypto exchanges and lenders to adopt crypto-friendly conditions. The treasury encouraged the crypto community in the UK to share valuable input concerning the consultation report by April 30.
New Regulations for Crypto Firms
The ongoing crypto assets price fluctuation and market uncertainty that has limited crypto firms’ growth prompted the regulators’ intervention. A report shared by the newly appointed Economic Secretary of the UK’s Treasury, Andrew Griffith, on February 1 confirmed that the regulators would continue to adopt technological changes to improve economic growth.
Griffith reiterated that the changes in technology include the current development in the crypto realm.
He argued that the regulators would be at the forefront of safeguarding the interest of the tech-savvy population in implementing the new technologies. Its achievement mandates enacting non-competitive standards.
Why is the UK Treasury Pushing for Crypto Adoption?
Besides Griffith’s remarks on crypto regulation, his colleague and Chancellor of the Exchequer Nadhim Zahawi had a similar thought last year.
Zahawi revealed last July that the treasury planned to regulate stablecoins. Before Zahawi’s sentiments, the outgoing Chief Secretary of the UK Treasury, John Glen, had pushed for the UK to become a leading crypto Hub in 2022.
Glen’s efforts came when the UK government launched a regulatory framework for crypto assets portraying the benefits and the potential risks in April 2022.
Features of the Consultation Report
Remarkably, the UK Treasury constitutes a larger number of pro-crypto members. The huge ripple effect caused by the collapse of the Bahamas crypto exchange FTX has influenced the regulators to expedite the implementation of crypto regulations.
According to the consultation report, the crypto firms in the UK will be tasked to abide by the set standards to engage in crypto activities. Also, the financial service providers are not exempted from the proposed regulations.
In the meantime, the consultation report must undergo amendments to improve consumer protection and market stability.
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