UK Government Announces Plans to Introduce Formal Legislation to Regulate Cryptocurrency Industry by 2024

New proposed rules include stricter regulations for exchanges, custodians, and crypto lending companies, with sector firms required to obtain authorization from the Financial Conduct Authority.

• The UK government has confirmed its intention to regulate the cryptocurrency industry with formal legislation expected by 2024.
• The proposed regulations include stricter rules for crypto exchanges, custodians that store crypto on behalf of clients, and crypto lending companies, requiring these firms to be authorized by the Financial Conduct Authority.
• The UK's approach to crypto regulation will cover aspects similar to those in traditional banking and financial sectors, such as market abuse and cryptoasset issuance disclosures.
• These regulatory moves are informed by recent market events, including the collapse of FTX crypto exchange, which highlighted the need for effective regulation in the crypto industry.
• Despite the new regulations, Britain remains committed to fostering an environment conducive to innovation, maintaining financial stability, and ensuring consumer protection with the use of new technological advancements.

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