The UK government has responded to its consultation on the regulation of crypto assets by releasing final proposals on Monday.
These proposals have been informed by input from companies, experts, and recent market events, such as the failure of FTX.
The proposals outline the UK government’s plan to regulate certain crypto asset activities for the first time, bringing them within the scope of the financial services regulatory perimeter.
According to the report, the government’s stance is that firms engaging with UK retail consumers should be authorized regardless of their location.
Under the new framework, firms carrying out crypto asset activities will need to be authorized by the UK’s Financial Conduct Authority.
This will include requirements for crypto exchanges to have clear admission standards and to disclose information when listing new assets.
However, the final proposals do not cover the regulation of decentralized finance (DeFi), and it was stated that DeFi activities will not be regulated in this phase of development.
