- Andrew Griffith, Economic Secretary to the UK Treasury, has stated that regulatory legislation for cryptocurrencies could be enforced in Britain within 12 months.
- The UK government aims to create tailored legislation concerning crypto-assets
- The country aims to establish itself as a global leader in crypto asset technology, amid growing competition from other nations
Great Britain is poised to step up its efforts to regulate cryptocurrencies, according to Andrew Griffith, the Economic Secretary to the UK Treasury. He told the media in a recent interview that crypto regulation could be enforced as early as 12 months from now.
Following the UK government’s consultation on the topic, which ends on 30th April, it is clear that the government is looking to create tailored legislation concerning crypto assets. “We’ve got control back of our rulebook, not something the UK has had for decades,” Griffith explained regarding Britain’s exit from the European Union. Griffith continued stating that the UK’s regulatory approach would balance existing and new regulations.
This announcement comes as countries like Dubai and Singapore actively vie to establish themselves as cryptocurrency-friendly regions, encouraging firms to relocate. Sunak, then the UK finance minister and now prime minister, has declared his ambition to make Britain a global leader for crypto asset technology. Cryptocurrency companies have repeatedly and consistently called for more explicit regulations to operate unhindered.
Griffith emphasized that the regulation would harmonize the token and asset transfer rules to ensure they follow a unified regulatory standard. The financial markets legislation, currently making its way through the UK parliament, aims to regulate asset-backed stablecoins, which are digital assets that rely on real-world currencies, such as fiat money and bonds, to maintain stability.
Britain Imposing More Regulations after FTX
In February, the UK government launched a new industry consultation, outlining its regulatory plans for the cryptocurrency industry. The talk, which aims to synchronize the crypto industry’s compliance with traditional financial institutions, brings a variety of measures to the table. This includes strengthening regulations on intermediaries and custodians responsible for storing cryptocurrencies on behalf of clients.
Proposed regulations would also crack down on risky loans between crypto firms that do not follow due diligence, aiming to establish a new “world-first regime” to strengthen rules on the lending of crypto assets. Additionally, it would enhance consumer protection and operational resilience for firms.
According to Andrew Griffith, the Economic Secretary to the Treasury, the government is determined to promote technological change and innovation while ensuring that consumers are safeguarded: “But we must also protect consumers who are embracing this new technology – ensuring robust, transparent, and fair standards.”
The FTX scandal, where the company failed after improperly recycling customer assets, has emphasized the need for global regulators to take a firm line on regulating the unregulated cryptocurrency sector. The European Union and the United States’ crypto rules have underlined excellent consumer protection.
As of December 2022, Andrew Griffith voiced his support for timely, effective, and transparent regulation. The FTX’s collapse has amplified the need for world-class regulation in the crypto market. The proposals set out last Tuesday would require stricter transparency rules for digital currency exchanges, ensuring they publish relevant disclosure documents and admin requirements for trading digital tokens.
