The UK government has set out plans to regulate the cryptocurrency market with the aim of bringing confidence and clarity to businesses and consumers.

A set of consultation proposals announced by HM Treasury include rules for the lending of crypto asses and the strengthening of trading platforms.

The government said it wants to regulate cryptocurrency in the same way it regulates traditional finance, with a goal of mitigating the risks and volatility that can occur in the cryptocurrency market.

The proposals suggest that trading platforms should be responsible for defining the detailed content requirements for admission and disclosure documents, with the government saying this would ensure crypto exchanges have “fair and robust” standards.

The plans call for the strengthening of rules around financial intermediaries and custodians – which have the responsibility of facilitating transactions and safely storing customer assets.

Commenting on the news, Andrew Griffith, economic secretary to the Treasury, said: “We remain steadfast in our commitment to grow the economy and enable technological change and innovation – and this includes cryptoasset technology.”

He added: “But we must also protect consumers who are embracing this new technology - ensuring robust, transparent, and fair standards.”

Andrew Whiteworth, policy director EMEA, at currency exchange Ripple, said that the government was taking a big step towards putting an appropriate regulatory framework in place.

He added: “From today, the government should encourage further collaboration with the private sector to devise a comprehensive, risk-based framework, which aligns with international best practice. That’s how the UK will showcase crypto leadership and reap the rewards promised by this technology.”

Share Story: