The UK Treasury published draft legislation on April 29 outlining new rules for firms offering crypto services in the UK, including stablecoins, staking, and custody. The regulations aim to bring these firms under the supervision of the Financial Conduct Authority to boost investor confidence and support growth while protecting UK investors. The legislation will introduce new categories and definitions for cryptoassets, requiring authorization for firms engaging with crypto activities. Firms must comply with existing financial services legislation, including regulations on financial ads and anti-money laundering. The Financial Conduct Authority will establish an application window for existing crypto firms to apply for authorization before full commencement. Failure to secure authorization will result in a wind-down process for firms. Discussions with US counterparts on digital securities collaboration are also ongoing.

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