The UK could see regulation of digital assets over the next 12 months as part of a push to transform the country into a hub for digital assets, Economic Secretary to the Treasury Andrew Griffith has told CNBC Monday.
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- The government will work with the Financial Conduct Authority (FCA) to establish a regulatory framework for digital assets that will combine existing financial asset laws with new rules specific to digital assets.
- The FCA has already started regulating crypto-related businesses within its existing powers, but Griffith said more needs to be done.
- He pointed to the Financial Services and Markets Bill, currently pending in Parliament, as an example of upcoming legislation containing provisions on crypto.
- The bill, which covers stablecoins, will come into force ahead of the broader crypto regulatory framework.
- The UK Treasury will publish a consultation paper on cryptocurrencies and stablecoins in the coming months, focusing on the risks and benefits of these assets, including their potential for illicit activities such as money laundering. money and the financing of terrorism.
- The UK government hopes to strike a balance between protecting consumers and promoting innovation in the crypto industry, with a move towards crypto regulation in line with similar developments in other countries such as Dubai, Singapore and Japan.
See related article: Bank of England says stablecoins need usage limits to prevent financial instability