Regulation
The UK confirms plans to regulate the cryptocurrency industry with formal legislation
Bitcoin, the world’s largest cryptocurrency, rose stealthily in 2023.
Chris Ratcliffe | Bloomberg | Getty Images
The UK government confirmed plans to regulate the cryptocurrency sector on Monday, announcing in a consultation document that it will seek to introduce formal legislation for crypto businesses by 2024.
The government has published its response to a consultation document published earlier this year, which recommendations outlined on the regulation of the cryptocurrency sector.
In Monday’s filing, the government said it intends to subject a range of cryptocurrency-related businesses to the same regulations that govern banks and other financial services companies.
“I am very pleased to present these final proposals for the regulation of cryptocurrencies in the UK on behalf of the Government,” Andrew Griffith, the UK’s financial services minister, said in a statement.
“I look forward to our continued work with the industry to make our vision a reality for the UK as a global hub for cryptocurrency technology.”
The government’s proposals include stricter rules for exchanges, custodians that store cryptocurrencies on behalf of customers, and cryptocurrency lending companies.
The UK is also proposing tougher regimes for market abuse and the issuance and disclosure of cryptocurrencies.
According to the document, the government aims to present laws for the cryptocurrency industry to Parliament by 2024.
It is not immediately clear at this stage what the UK’s cryptocurrency laws will look like.
The EU has set out a clear framework for digital assets with the MiCA (Markets in Crypto-Assets) regulation, including a licensing process for cryptocurrency companies.
The UK is further along in this process than other leading tech nations. Numerous bills are pending in Congress, but the United States is far behind others when it comes to passing formal federal legislation for the cryptocurrency industry.