Great
Britain is preparing the ground for cryptocurrency regulation in the country in
the future, the UK’s government announced on Wednesday. Public consultation has
been launched as a first step to prepare a draft law on regulating digital
assets.
According
to the official press release published on the government website, the UK wants
to protect its consumer better and allow the crypto industry to grow within the
regulated ecosystem. The new crypto rules will aim to exclude the risk of bad
actors entering the market and reduce the risk of money laundering activities using
a decentralized and anonymous crypto niche.
“We
remain steadfast in our commitment to grow the economy and enable technological
change and innovation – and this includes cryptoasset technology. But we must also
protect consumers who are embracing this new technology – ensuring robust,
transparent, and fair standards,” Andrew Griffith, Economic Secretary to
the Treasury, commented on the proposed regulations.
The UK
government points out that cryptocurrencies, as an emerging sector, still experience
heightened volatility. In addition, the recent high-profile collapse of many companies
following the bankruptcy of the FTX exchange has exposed the ‘structural vulnerability’
of some business models prevalent in the industry.
“Our
robust approach to regulation mitigates the most significant risks, while
harnessing the…
