Today HM Treasury published a consultation document covering the regulation of crypto-assets. Andrew Griffith, Economic Secretary to the Treasury, previously outlined the approach in a Parliamentary hearing. Based on those statements, he does not expect regulation from this consultation to be passed in 2023.
The UK considers security tokens as already regulated, stablecoin legislation has been tabled as part of the Financial Services and Markets Bill (FSM), and rules for crypto asset promotions are in the works. This consultation is around other crypto-asset legislation, excluding non-financial assets such as collectibles (or NFTs).
The government is keen to promote its support of innovation. “Risk taking is a desirable part of the cycle of innovation and we wish to manage, not stifle, this,” said Griffith in the Foreword to the consultation. At the same time, it is adopting the approach of “same risk, same rules” and wants to make sure that any regulation is sufficiently agile given the nascent state of the cryptocurrency sector.
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