Companies that sell cryptocurrencies will soon have to face the same standards as traditional financial companies, according to new planned rules of the Treasury.
Crypto exchanges, dealers and agents offering cryptocurrency services like Bitcoin and Ethereum will be introduced in the scope of financial regulators in the context of incoming changes, they are therefore better controlled.
What will the new crypto-assembly rules mean?
Cryptographic companies with British customers will have to comply with clear standards on transparency, consumer protection and operational resilience – as well as companies in traditional finance.
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The objective is to repress crooks and other “bad actors”, better protecting millions of people through Great Britain, while supporting legitimate innovation, says the Treasury.
About 12% of British adults now have or have a crypto, compared to only 4% in 2021. But too often, says the Treasury, consumers were exposed to businesses and risk scams.
At a major summit in London to mark British week Fintech, Chancellor Rachel Reeves revealed that the United Kingdom had published a bill to regulate cryptocurrency.
Reeves said on Tuesday: “Robust rules concerning crypto will strengthen investor confidence, will support the growth of fintechs and protect people across the United Kingdom.
“Today’s announcement sends a clear signal: Great Britain is open to business – but closed to fraud, abuse and instability.”
Final crypto-tassets legislation will be implemented after discussions on the draft provisions with the cryptography sector.
The chancellor also said that discussions were underway with the United States on supporting use and responsible growth in digital assets, as part of the British Labor Labor Government Plan.
This follows discussions in Washington between the Chancellor and the US Treasury Secretary, Scott Bessent, where they also discussed opportunities to help companies innovate on both sides of the Atlantic.
This includes greater collaboration on digital titles between the United Kingdom and the United States, including the proposals put forward by the SEC HESTER PIIRCE commissioner for a transatlantic sandbox for digital titles-a means of testing new technologies and practices.
The Chancellor also announced that the government would publish the very first strategy of growth and competitiveness of financial services on July 15, in parallel with her speech of Mansion House.
This objective is to “support long-term growth in the financial services sector”, with a fintech identified as a “priority sector”, and to help it finance investments and growth across the United Kingdom, says the Treasury.
