by Huw Jones
LONDON (Reuters) – Britain announced on Monday the upcoming implementation of a first set of rules aimed at regulating the crypto-asset sector, including requiring official authorization to be able to offer services to consumers.
Crypto-assets represent only a tiny part of the global financial system, but their popularity has grown significantly in recent years. The collapse of the FTX platform, however, revealed a lack of regulation and raised concerns about links with traditional finance and the harm suffered by consumers.
The European Union has already approved a set of rules to regulate the crypto-asset market, which has encouraged platforms in the sector to set up within the European bloc.
Currently, cryptocurrency businesses in the UK are only required to have anti-money laundering safeguards in place.
The British Ministry of Finance intends to require that companies carrying out activities related to cryptoassets be approved by the Financial Conduct Authority, the British stock market watchdog.
“The government’s proposed measures build on recent market events – including the collapse of FTX – which strengthen the case for effective regulation and industry engagement,” the ministry said.
Britain remains committed to creating a regulatory environment in which businesses can innovate, while maintaining financial stability so people can use new technologies reliably and safely, he added.
(Reporting by Huw Jones, Blandine Hénault for the French version, editing by Claude Chendjou)
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