Coin Edition -
- The United Kingdom has proposed a framework for regulating the cryptocurrency market.
- One proposal aims to implement stricter regulations for crypto lending services.
- After the consultation ends on April 30, the administration will start drafting a response.
To curb the shady dealings that surfaced in the cryptocurrency market last year and ultimately led to FTX‘s bankruptcy, the U.K. government has reportedly outlined measures to regulate the sector.
On Tuesday, the Treasury Department announced it would release a series of proposals to “regulate a broad suite of cryptoasset activities, consistent with its approach to traditional finance.” In addition, it announced a temporary reversal of its commitment to bring cryptocurrency advertising regulations in line with those for stocks, shares, and insurance.
One of the initiatives proposed would tighten regulations on financial middlemen and custodians that hold cryptocurrency on their client’s behalf. There was a spike in high-risk loans issued between various crypto businesses in 2022, and little or no due diligence was performed on the counterparties engaged in these transactions.
The United Kingdom has proposed new legislation that would crack down on these kinds of practices, to create a “rob ...
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