The UK government has recently released its final regulatory framework for crypto asset activities, based on input from various stakeholders and significant market events. These proposals aim to encompass several aspects of the crypto industry within the regulatory framework of financial services, including the authorization requirements for firms dealing with UK retail consumers.
Treasury Minister Andrew Griffith emphasized the government’s goal of making the UK a “global hub for cryptoasset technologies” while also attracting and supporting crypto businesses. He stated, “The proposals plan to create the conditions for crypto asset service providers to operate and grow in the UK, whilst managing potential consumer and stability risks.”
Under the new framework, firms engaged in crypto asset activities will need to obtain authorization from the UK’s Financial Conduct Authority (FCA). The authorization process will involve specific admission standards for crypto exchanges and requirements for full disclosures when introducing new assets.
The UK Treasury collaborated with legal and consulting firms, industry associations, and members of the public and academia during the consultation process. Changes were made to the framework based on the insights received. Griffith acknowledged the valuable input, saying, “While most aspects of our proposals were well-received by the large majority of respondents, we have modified certain features of our future framework to take onboard the evidence presented.”
