The UK Government is proposing new ambitious plans designed to protect investors and consumers while supporting economic growth.

Currently undergoing consultation until April 2023, these new measures are designed to provide a clear regulatory framework in relation to cryptoasset activities.

The proposals within the consultation include:

  • A tightening of the rules for crypto trading platforms, so that the responsibility falls on crypto trading venues for defining the detailed content requirements for admission and disclosure documents;
  • The creation of a world-first regime for crypto lending;
  • Obtaining opinions on a market abuse regime that aims to improve market integrity.

By reading a little further into the consultation, it would appear that HM Treasury is trying to introduce measures that would:

  • Protect consumers by ensuring assets are returned to them if a crypto platform fails;
  • Enhance data reporting requirements, including with regulators; and
  • Prevent market abuse and endemic ‘pump and dump’ schemes.

“The UK has outlined some very bold ambitions for crypto regulations and the stakes could be high depending on how these new measures are implemented,” said our Crypto & Blockchain Team at Mackrell.Solicitors.

“The right balance and how resulting regulations will be executed will really dictate whether the UK will be the global hub for crypto that it wants to be?

“These proposals seem to be taking into account recent developments and adapt existing financial regulatory frameworks to crypto in a way that recognises and respects their inherent differences to TradFi instruments, and while there will be concern about some of the proposals, there are new opportunities as well, which may help the UK to become a leader in this field and support national economic growth.”

To find out more about Mackrell.Solicitors’ cryptoasset and blockchain legal services, please contact us.

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