The UK government confirmed on Monday its plans to regulate the cryptocurrency sector, disclosing in a consultation paper that it aims to implement formal legislation for crypto activities by 2024. This action follows the government’s release of its response to a consultation paper from earlier this year, which outlined recommendations for regulating the crypto industry.
In the paper published on Monday, the government expressed its intention to subject several crypto asset activities to the same regulatory framework that oversees banks and other financial services companies. Andrew Griffith, the Minister for Financial Services in the UK, expressed his satisfaction in presenting these conclusive proposals for crypto asset regulation on behalf of the government.
“I look forward to our continued work with the sector in making our vision a reality for the UK as a global hub for cryptoasset technology.”
Andrew Griffith, the U.K. financial services minister
The government’s proposals involve heightened regulations for exchanges, custodians responsible for client crypto storage, and crypto lending companies. Furthermore, the UK is proposing stricter measures against market abuse and enhancing disclosure for cryptoasset issuance.
As per the document, the government’s goal is to enact cryptocurrency industry legislation before Parliament by 2024. However, the precise nature of the future UK crypto regulations remains uncertain.
On the other hand, the European Union (EU) has established a well-defined framework for digital assets through its MiCA (Markets in Crypto-Assets) regulation, which includes a licensing procedure for cryptocurrency companies.
The United Kingdom is notably more advanced in this regulatory process compared to other prominent technology-driven nations. While several bills are making their way through Congress in the United States, the country lags behind its peers in enacting comprehensive federal legislation for the cryptocurrency industry.
