Britain confirms plans to regulate crypto currency industry

In the Monday paper, the government said it aims to bring a number of crypto asset activities under the same regulations that govern banks and other financial services companies

The British government on Monday confirmed plans to regulate the crypto currency industry, announcing in a consultation paper that it will look to bring in formal legislation for crypto activities by 2024.

The government published its response to a consultation paper issued earlier in 2023, which outlined recommendations on regulating the crypto sector.

In the Monday paper, the government said it aims to bring a number of crypto asset activities under the same regulations that govern banks and other financial services companies.

I am very pleased to present these final proposals for crypto asset regulation in the UK on behalf of the Government, Andrew Griffith, the U.K. financial services minister, said in a statement.

I look forward to our continued work with the sector in making our vision a reality for the UK as a global hub for crypto asset technology, he added.

The government’s proposals include more stringent rules for exchanges, custodians that store crypto on behalf of clients, and crypto lending firms.

The U.K. also proposes more stringent regimes for market abuse and crypto asset issuance and disclosures.

The government intends to introduce laws for the crypto industry before Parliament by 2024, as per the paper.

It is not immediately clear at present what U.K. laws on crypto will look like.

The European Union set out a clear framework for digital assets with its MiCA (Markets in Crypto-Assets) regulation, including a licensing process for crypto companies.

The U.K. is further ahead in the process compared to other tech leading countries. In the U.S., a number of bills are going through Congress, but the U.S. is way behind other countries when it comes to bringing about formal federal laws for the crypto sector.