His Majesty’s Treasury, the economic and financial ministry for the United Kingdom, on Wednesday, commenced its plan to dispense financial regulations to govern the crypto industry. The agency released a consultation document addressing the need for crypto regulations.
The consultation document, also called a green paper, is a document issued by the government to individuals within and outside the UK parliament. These documents outline policies or proposals to which the individuals will give feedback. The feedback received helps the government tailor regulations to be dispensed.
HM Treasury welcomes feedback on its latest consultation document until April 30, 2023.
UK to Regulate Crypto
Proposals within the consultation document cover several aspects of the crypto industry, such as crypto exchanges and custodian firms. The UK government’s concerns spring from the crash of several crypto firms and projects in 2022. The most prominent is FTX, which swept billions from the global crypto market.
The UK government has also commented on the crypto lending business. This also suffered amid the 2022 market crash, as top lending firms struggled with their finances. Examples of such lending firms include BlockFi, Celsius, Voyager, Genesis, etc.
The regulatory framework that is underway trails the Bank of England’s request in July to introduce stricter crypto regulations.
The financial agency believes that crypto regulations around these aspects of crypto will protect investors. Andrew Griffith, the Secretary to the HM Treasury, reiterated this when he said:
“We remain steadfast in our commitment to grow the economy and enable technological change and innovation – and this includes cryptoasset technology. [. . .] But we must also protect consumers who are embracing this new technology – ensuring robust, transparent, and fair standards.”
The latest move by the UK government is proof that the jurisdiction of UK Prime Minister Rishi Sunak is keenly interested in adopting crypto assets. In December, the UK government extended its tax breaks to allow investment managers to include cryptocurrencies as part of their investments.
Crypto Regulations Among Countries
The cryptocurrency industry has come under the regulatory umbrella of several countries. For example, Hong Kong declared its plan to regulate the stablecoin business in the country.
Other countries that have made similar moves include South Korea, the United States, Singapore, and others.
