Crypto regulation on the way –but government says it will support new ideas

Chris Dorrell

THE GOVERNMENT has set out plans to “robustly regulate” the crypto asset industry as it seeks to become a cryptocurrrency hub despite the problems faced by the industry last year.

The proposals include rules for crypto trading platforms and a “world-first” regime for crypto lending, as the government seeks to “embrace technological change”.

Proposals will make crypto trading venues responsible for defining admission requirements and publishing disclosure documents, while ensuring crypto exchanges have “fair and robust standards”. Rules around financial intermediaries and custodians –which have responsibility for facilitating transactions and safely storing customer assets – will also be strengthened.

“These steps will help to deliver a robust world-first regime strengthening rules around the lending of cryptoassets, while enhancing consumer protection and the operational resilience of firms,” the government said.

Calls for increased crypto regulation have increased in the past few months.

First, crypto prices crashed – leaving many who had only seen upward momentum facing their first serious reverse.

Then the high-profile collapse of FTX shone a spotlight on the standards of governance in the industry.

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