Britain plans regulations for cryptoassets

Great Britain is pushing for the cryptocurrency regulation in order to create an environment that encourages innovation while ensuring financial stability and the safe and reliable use of new technologies
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Britain has announced plans to introduce its first set of regulations for the cryptocurrency sector, which would require market players to obtain authorization before offering services to its consumers. The rules will focus on crypto assets like bitcoin and its underlying distributed ledger technology (DLT) or blockchain, as these have significant potential, particularly in areas such as securities settlement.

According to the ministry, “The government’s position is that firms dealing directly with UK retail consumers should be required to be authorized irrespective of where they are located”. It also clarified that the rules will be integrated into existing market laws and will align with the EU regulations on crypto assets (MiCA).

Moreover, Britain will also regulate stablecoins and present legislation in 2024 to empower its independent financial regulatory body, the Financial Conduct Authority (FCA), to oversee them. It also intends to draft regulations to manage the failure of a major stablecoin.

Overall, the ministry stated that the aim of these measures is to create a regulatory environment that encourages innovation while ensuring financial stability and the safe and reliable use of new technologies.