At the end of last week, HM Treasury published a consultation on cryptoassets (digital assets) and stablecoins. An earlier consultation on cryptoasset promotions concluded on 26 October with results expected soon.
The consultation is said to be the first stage in the government’s process concerning a broader regulatory approach to crypto. The government says it seeks to ensure a framework that supports innovation and competition while mitigating risk.
The document also includes a call for evidence on investment and wholesale uses of cryptoassets, and the broader use of DLT in financial markets.
John Glen, MP, Economic Secretary to the Treasury, says:
“The UK has long been recognised as a world-leader in financial technology [Fintech]. We are committed to maintaining this position. In practice, that means creating a regulatory environment in which firms can innovate, while crucially maintaining the highest regulatory standards so that people can use new technologies reliably and safely. This is essential for confidence in the financial system more broadly.”
Currently some sectors of cryptoassets fall outside the UK regulatory perimeter. Because of this, the Treasury’s March 2020 Budget outlined two measures as part of the UK’s response to cryptoassets:
- consulting on bringing certain cryptoassets into scope of financial promotions regulation to enhance consumer protection; and
- consulting on the broader regulatory approach to cryptoassets, including new challenges from so-called ‘stablecoins’
The consultation is embedded below. Responses are being accepted until 1159PM GMT, March 21, 2021.
Responses may be forwarded to cryptoasset.consultation@hmtreasury.gov.uk