Cryptos under the yoke of regulation – The british treasurythe UK government department responsible for developing and implementing public finance policy, recently announced its intention to better regulate crypto platforms. According to a report published recently, the crypto sector is not developed enough. Bitcoin and cryptocurrencies, given their volatile coursespose a risk to financial stability and consumer protection.
Security and transparency for crypto platforms
In the list of grievances drawn up by the British Treasury, the latter wishes to put in place regulations which will ensure the security of funds users. Exchanges will not be left behind, as their transparency will also be checked. In addition, these new regulations will include requirements in terms of compliance for exchanges under cover of sanctions if they do not comply with the rules.
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A crypto winter far too risky for the English regulator
This announcement follows a series of incidents that have continued to punctuate the year 2022: Celsius, Terra, FTX and 3AC. Many are ecosystems that have collapsedtaking with them the funds of their clients.
The British Treasury therefore hopes that this new regulation will help to strengthen consumer confidence in order to encourage the use of cryptocurrencies in its country. It is therefore not a question of scaring crypto off the island, but rather of propose a framework – open to criticism – to welcome it.
“Cryptocurrencies have the potential to become an important part of the global financial economy, but ensuring consumers are protected and operations are transparent is crucial. »
Statement from UK Treasury Spokesperson
This new regulation aims to guarantee the security and the transparency of the crypto sector in a country hard hit by inflation. But it is also for the regulatorset up a legal framework for Bitcoin and cryptocurrencies in his country to promote their development.
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