UK Treasury unveils plans to regulate crypto exchanges

The UK Treasury published a consultative report on implementing oversight of cryptocurrency exchanges and lending platforms with a view to uphold­ing ‘fair and reliable standards’.

The initiative aligns with the Financial Services Roadmap. Public comments are invited until 30 April.

The document’s aim is to instill ‘confidence and transparency for consumers and businesses’.

The department expects to mitigate the most serious volatility and structural vulnerabilities affecting certain business models in the sector by bringing them in line with TradFi.

The proposals would hold crypto exchanges to define detailed requirements for asset admission documents and disclosures.

The measures also envisage tighter rules for financial intermediaries and custodians.

The regulator will seek views on improving market integrity and consumer protection.

Earlier, Bank of England deputy governor Jon Cunliffe proposed regulating digital assets in line with traditional finance. He also noted that decentralized protocols do not yet provide an effective way to manage risks.

In December 2022, Cunliffe urged the creation of a regulatory framework for cryptocurrencies before the emergence of ‘systemic problems’.

Earlier in Parliament, introduced a Financial Services and Markets Bill that included regulation of digital assets.