The UK’s finance ministry is planning to unveil extensive cryptocurrency regulation within the next day, according to a Jan. 31 report from Reuters.
The ministry, otherwise known as HM Treasury, is expected to publish draft rules for British crypto companies on Wednesday, Feb. 1.
According to statements from the Treasury and its financial services minister Andrew Griffith, those rules will be applied to crypto trading venues (ie. exchanges). Specific rules will also be applied to financial intermediaries and custodians.
Specifically, the requirements will impose “fair and robust standards” requiring exchanges to define content requirements for admission and disclosure documents. That term refers to a set of standards currently observed by companies seeking a listing on the London Stock Exchange but which could be adapted to crypto exchanges.
Following the release of the draft, the ministry will consult with the public for three months. It will then accept proposals for detailed rules from the Financial Conduct Authority (FCA).
Today’s news was preceded by a Jan. 25 parliamentary debate, where Griffith led the conversation and lawmakers called for further regulation.
Reuters strongly implied that the upcoming rules were motivated by the collapse of Sam Bankman-Fried’s FTX exchange last November. However, the finance ministry did not explicitly express this notion in any quoted statements.
Despite the strict rules, Griffith said today that the UK’s commitment to economic growth “includes cryptoasset technology.” In similar reports from Jan. 11, he said that the UK should proceed with its plans to become a crypto hub.
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