By Tom Singleton, BBC
1st February 2023 – (London) The British government is announcing measures to “robustly” regulate the cryptocurrency industry.
It says the proposals, being published on Wednesday, will give consumers confidence while allowing the sector to “thrive”.
Critics say ministers should take a cautious approach, given the industry’s prolonged global slump.
The crisis has seen companies collapse, crypto values tumble and customers lose huge sums of money.
The Treasury says its proposals – on which it is launching a consultation – will:
- ensure customer assets are returned to them if a crypto business goes bust
- lay down rules on crypto-asset promotions which are fair, clear and not misleading
- enhance data-reporting requirements, including with regulators
- implement new regulations to prevent so-called pump and dump, where an individual artificially inflates the value of a crypto asset before selling it
Ministers say the measures will “mitigate the most significant risks” of crypto technologies, while “harnessing their advantages”.
Economic Secretary to the Treasury Andrew Griffith said the government remained “steadfast in our commitment to grow the economy and enable technological change and innovation – and this includes crypto-asset technology”.
“But we must also protect consumers who are embracing this new technology – ensuring robust, transparent and fair standards,” he added.