UK Plans ‘Robust’ Cryptocurrency Regulation Amid Uncertainty in Sector
upstart writes:
The UK has set out a detailed plan to regulate the crypto industry in the wake of the FTX collapse late last year.
Published today (1 February), the proposals are set to give consumers in the crypto industry confidence in their investments while also allowing the sector to blossom.
Rishi Sunak, the UK prime minister, is largely seen as crypto-friendly by industry experts. The latest move will aim to put the UK's financial sector "at the forefront of cryptoasset technology and innovation" while managing "potential consumer and stability risks".
[...] A consultation has now been launched on the proposals that will last until 30 April 2023. The full set of proposals currently under consultation can be accessed on the UK government website.
Some of the proposals include ensuring customer assets are returned to them in case a crypto business goes bust, laying down fair and just rules on promotion of crypto assets and enhancing data-reporting requirements - including with regulators.
The proposals also seek to implement new regulations that will prevent so-called 'pump and dump' - a practice whereby an individual artificially inflates the value of a crypto asset before selling it.
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