The UK government has announced its final plans for regulating crypto assets, with the goal of bringing many activities inside the purview of the Financial Conduct Authority (FCA).
The UK government has announced its final plans for regulating crypto assets, with the goal of bringing many activities inside the purview of the Financial Conduct Authority (FCA). The government emphasized that businesses working with UK retail consumers, regardless of location, must be authorized.
The government plans to introduce these legislations in phases, with the regulation of fiat-backed stablecoins to be implemented first early next year.
The FCA will now demand registration for organizations engaged in crypto asset activities, including crypto exchanges, which will be required to create admission rules and publish information when listing new assets.
The recommendations, however, did not address decentralized finance (DeFi), since the government saw the need for additional international collaboration before trying regulation. Rather than establishing a separate framework, the new measures will be incorporated into current UK market laws.
This comes as UK lawmakers just passed a bill to allow law enforcement to freeze illicit crypto assets.
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