On 1 February 2023, the UK government announced an open consultation: ‘Future financial services regulatory regime for cryptoassets’^[1]. The document and the related consultation execute the announcements of the UK government of April 2022 relating to the need to introduce a new regulatory system for the cryptoasset sector.

The authors of the project notice both risks and opportunities arising from the fast-growing cryptoasset market. This is why the purpose of the proposed system is to create a clear regulatory framework for the sector, while maintaining its innovativeness and ensuring the security and stability of the UK’s financial system.

The new regulations are to create conditions for development and business activity of cryptographic service providers in the UK and allow investor to make informed decisions, through a good understanding of the high risk associated with cryptoasset investment.

The consultation will close on 30 April 2023.

More details and the consultation paper can be found here:

https://www.gov.uk/government/consultations/future-financial-services-regulatory-regime-for-cryptoassets

^[1] “Future financial services regulatory regime for cryptoassets. Consultation and call for evidence”;