UK unveils comprehensive proposals to regulate cryptoasset activities
HM Treasury (HMT) set out on February 1 proposals for consultation on a UK financial services regulatory regime for crypto-assets. In its proposed framework, HMT underlines the principle that crypto-assets and the activities underpinning their use should follow the standards expected of other similar financial services activities. Importantly, the UK intends to regulate the activities rather than the asset itself. These activities include issuance and offering, trading, custody, lending, and exchange. For each activity, the consultation sets out key design features of the regime, such as prudential requirements, data reporting, consumer protection, location policy and operational resilience. The paper concludes with consideration of the sustainability impact of crypto-assets and decentralised finance (‘De-Fi’) protocols. The proposals are open for feedback until April 30, 2023.
On February 7, the Bank of England and HMT released their assessment of the case for a retail central bank digital currency (CBDC). The intention is that the introduction of a retail CBDC would promote innovation and efficiency in payments. This paper is open for comments until June 7, 2023.
Bloomberg
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