GovWire

In April 2022, the government committed to introducing a new regulatory regime for cryptoassets, reflecting the risks and opportunities they present.

This consultation paper sets out proposals for this future regime and marks the next phase of the governments approach to regulating cryptoassets. It builds on previous HM Treasury proposals, which focussed on stablecoins and the financial promotion of cryptoassets.

The proposals seek to deliver on the ambition to place the UKs financial services sector at the forefront of cryptoasset technology and innovation and create the conditions for cryptoasset service providers to operate and grow in the UK, whilst managing potential consumer and stability risks.

The governments proposed measures have been informed by recent market events including the failure of FTX which reinforce the case for effective regulation and sector engagement.