The UK government has set out proposals for a “robust” regulatory framework for the crypto industry.
The new measures, which will be published today (February 1), are decisive steps towards cut-and-dry regulation of the crypto industry that will put an emphasis on protecting consumers and establishing clear rules for businesses to follow.
While the measures seek to protect consumers, lawmakers assure that the new regulations, strict as they are, also allow the sector to “thrive”, with the government already showing support for certain aspects of the industry.
However, critics of cryptocurrencies and digital assets in general have called for any new set of laws to be implemented carefully and with consideration to the slumping global market.
A number of established crypto companies have collapsed, among which crypto lender Voyager and exchange FTX.
According to the BBC, the Treasury is putting its proposals up for consultation and will seek to implement certain safeguards, such as reimbursing consumers in cases where crypto businesses go bankrupt.
The framework will establish a clear set of rules for the promotion of digital assets, without any misleading claims.
It should improve the overall level of reporting and communication between businesses from the sector and relevant regulators and introduce a new set of regulations that will make it harder to participate in pump and dump schemes.
The Treasury is confident that it can help tackle the most serious issues related to crypto while ensuring that the sector is not being overregulated.
Economic secretary to the Treasury Andrew Griffith has assured that the government remains steadfast in ensuring that consumers are protected insofar as crypto is concerned – something that will be further fleshed out in the new set of proposed regulations.
Some UK politicians and policy makers have worried that the country may be falling behind on crypto regulation, prompting the latest push into the sector.
Looking for your next crypto casino? Check out: Bitcasino, Gamb.co or FortuneJack.