The UK government has vowed to bring in cryptocurrency regulations.
The Treasury has promised to bring in rules that will seek to “manage” the threats from the “turbulent industry” of virtual currencies like Bitcoin after the sector had a dramatic 2022 with assets dipping in value by a reported 75 per cent from their high in November 2021 of $3 trillion.
Ministers believe up to 10 per cent of the UK adult population possess some form of crypto and intend to use present regulations - like the Financial Services and Markets Act 2000 -as a starting point to make a system supported by "confidence, credibility and regulatory clarity" instead of making a whole new framework.
They claim to be aiming to create parity between new and more conventional financial services, ruled by the idea of "same risk, same regulatory outcome".
Andrew Griffith, the Economic Secretary to the Treasury - according to BBC News - said that the government is "steadfast in our commitment to grow the economy and enable technological change and innovation - and this includes crypto-asset technology".
"But we must also protect consumers who are embracing this new technology - ensuring robust, transparent and fair standards.”
Last year, the Prime Minister Rishi Sunak - when he was the Chancellor Exchequer - outlined his intentions to make the UK “a global hub for crypto-asset technology”.
However, following this, the industry has faced numerous crashes and scandals like the FTX fund being described as “one of the biggest financial frauds in US history” by the SEC.
Harriett Baldwin, a Conservative MP and the chair of the Treasury Committee wondered if the “truly Wild West behaviour” of the industry could ever be curtailed.
