UK unveils plans for crypto regulation

The United Kingdom announced on Monday its intention to introduce comprehensive legislation to govern the rapidly expanding cryptocurrency sector. The move comes as part of the government’s commitment to ensuring consumer protection and financial stability in the burgeoning digital asset market.

The proposed regulations, in line with the European Union’s approved framework, will necessitate all entities engaged in cryptoasset activities to obtain authorisation from the Financial Conduct Authority (FCA) before providing services to consumers. The UK’s finance ministry, responding to public consultations, emphasised the importance of clear guidelines and accelerated implementation.

“In response to calls for further clarity on timelines, and to accelerate the overall implementation programme, the government’s aim is for phase 2 secondary legislation to be laid in 2024, subject to Parliamentary time,” stated the ministry in a feedback statement.

The move has been welcomed by industry experts and stakeholders who have long advocated for a robust regulatory framework in the crypto sector. By mandating authorisation, the UK aims to enhance transparency and security within the digital asset market, addressing concerns related to fraud, money laundering, and investor protection.