Among some of the proposals being considered involve strengthening the rules governing the trading platforms themselves, while also developing a “robust world-first regime for crypto lending,” according to the treasury. All of this is aimed at boosting consumer and business confidence and providing clarity in the digital asset industry.
“We remain steadfast in our commitment to grow the economy and enable technological change and innovation–and this includes cryptoasset technology,” said Andrew Griffith, Economic Secretary to the Treasury. “But we must also protect consumers who are embracing this new technology--ensuring robust, transparent, and fair standards.”
The plan laid out earlier this month calls for crypto asset regulation to be consistent with the regulatory approach bestowed upon traditional financial institutions. As such, a consultation and call for evidence was published here. That call will close at the end of April, at which time government officials will synthesize public feedback and consult with the Financial Conduct Authority on a path forward.
“Our robust approach to regulation mitigates the most significant risks, while harnessing the advantages of crypto technologies. This enables a new and exciting sector to safely flourish and grow, boosting jobs and investment,” according to the treasury.
From Twitter
"@hmtreasury published its consultation setting out proposals to expand the regulation of #cryptoassets. Read here for our insights into the reforms–and next steps for firms that provide or market #cryptoasset services in the UK or to UK customers."
In addition to improvements to the crypto regulatory landscape, the treasury is also exploring introducing a central bank digital currency (CBDC) in the form of a digital pound to be issued by the Bank of England.
As such, it would be designed to be “used by households and businesses for everyday payments in-store and online” and would be “interchangeable with cash and bank deposits, complementing cash,” according to the announcement of the plan. “While cash is here to stay, a digital pound issued and backed by the Bank of England could be a new way to pay that’s trusted, accessible and easy to use,” said Jeremy Hunt, chancellor of the exchequer. “That’s why we want to investigate what is possible first, whilst always making sure we protect financial stability.”
From Twitter
Ospree @Ospree_io ·Feb 1
"The UK’s Treasury published a consultation paper detailing its plan to regulate crypto exchanges & lenders. The document details measures aimed at strengthening rules for cryptoasset exchanges & creating a robust 'world-first' regime for crypto lending - https://linkedin.com/feed/update/urn:li:activity:7026590617442873344"
Among some of the notable characteristics the currency would hold include:
- Rigorous privacy and data protection standards on par with traditional bank accounts
- Wallet access through private-sector entities like smartcards and smartphones
- Payment-driven, lacking interest derived from holding
- Restrictions on how much can be held at once at onset
“As the world around us and the way we pay for things becomes more digitalised, the case for a digital pound in the future continues to grow. A digital pound would provide a new way to pay, help businesses, maintain trust in money and better protect financial stability,” said Governor of the Bank of England Andrew Bailey. “However, there are a number of implications which our technical work will need to carefully consider. This consultation and the further work the Bank will now do will be the foundation for what would be a profound decision for the country on the way we use money.”
Further still, some of the most pressing issues facing the UK and crypto holders around the world will be discussed at length during the Innovate Finance Global Summit 2023 taking place Monday, April 17 and Tuesday, April 18 at the Guildhall on Gresham Street in London. For event information, visit here
