UK Government promises robust Crypto regulation

The UK government has published proposals for crypto-asset regulation and hopes it will manage the risks of the industry.

The sector has had a calamitous year, with assets collapsing in value by an estimated 75% from their peak of about $3 trillion in November 2021.

Ministers estimate up to 10% of UK adults now own some form of crypto.

They plan to use existing regulations for the industry, rather than creating a bespoke regime.

The Treasury says that will allow crypto to benefit from the “confidence, credibility and regulatory clarity” of the existing system for financial services, as set out in the UK’s Financial Services and Markets Act 2000 (FSMA).

It wants to create a level playing field between traditional and emerging financial services, where the principle is “same risk, same regulatory outcome”.

But it also acknowledges some crypto businesses may simply choose to continue operating in offshore jurisdictions that “do not impose equivalent market-abuse rules”.

BBC/Dominica Nwabufo