Britain’s finance ministry sets out plans to regulate crypto assets in wake of FTX collapse. According to UK’s government, the purpose to regulate assets is to provide confidence and clarity to both consumers and businesses alike. The plan will seek to regulate a wide suite of crypto asset activities accordingly with other regulated financial markets.
According to the plan the platforms of crypto trading will bear all responsibility for defining the detailed content requirements for admission and disclosure documents. It will also be beneficial for the financial intermediary and custodians department as it will strengthen the rules and regulations around these sectors. Because they have a sensitive responsibility to safely store customer assets.
According to UK’s government, These steps will help deliver a first regime to the prosperous World by strengthening rules around crypto-assets lending.
Several crypto asset activities that include exchange, custody, and lending are centered around the government’s proposal. The consultation set off key design features of the government for every task and activity which is covering cautious requirements, consumer security, data reporting, and operational resilience.
To deal with a range of cross-cutting issues, the consultation paper proposes regimes that apply to crypto asset activities and business models including market abuse and crypto asset issuance and disclosures.
“We remain steadfast in our commitment to grow the economy and enable technological change including crypto asset technology and innovation. But we must also protect consumers who are embracing this new technology.”
Andrew Griffith, Economic Secretary to the Treasury.
It is a former Treasury proposals-Based Consultation that focused on stablecoins and the financial promotion of crypto assets. The consultation on crypto market integrity and consumer protection improvement will close on April, 30.
The government will analyze and consider the feedback and work on its consultation response. While the Financial Conduct Authority will consult on its detailed rules for the crypto sector.