Victor Ugochukwu · Dec 14, 2020 . 5min read
UK takes strict measures in order to safeguard investors’ interest in crypto assets
The UK government is keen on providing a regulatory and legal framework for the promotion of crypto assets.It thus wants to protect investor interests.
By Shilika · Jul 20, 2020 . 5min read
On 20th July 2020, an official proposal was published by the UK financial service sector regarding promotion of crypto assets. Off lately, the UK government is keen on protecting investors’ assets to cryptocurrencies. The 27 pages report laid down how the UK government has set up different authorities to foster innovation. Moreover, the government is also keen on exploring the potential impact of crypto-related assets on consumers and businesses in general.
Are governments adopting Crypto?
Thus the Cryptoasset Task Force formulated in 2018. It consists of HM Treasury, Financial Conduct Authority and Bank of England. Each of them has different roles and responsibilities in terms of enforcing crypto governance.
The HM Treasury is responsible for:
- Curbing financial crimes related to money laundering, terror financing and illicit activities.
- Furthermore, it is responsible for customer protection and market integrity.
The FCA is however involved in :
- Maintaining the regulatory framework
- Consulting retail investors on consumer protection risks.
Another key focus area for Cryptoassets’ Taskforce is the stablecoins. The FCA along with HM Treasury aims to understand the potential benefits and intricacies involved in the use of stablecoins. Moreover, it aims to learn the impact and challenges of stablecoins when used for wholesale and retail use. They also are working towards a clear regulatory framework on the same.
However lately the existing regulations in the UK relating to the use and promotion of crypto-assets have been detrimental. This proposal aims to safeguard the crypto space for investors who are looking to explore the same.
With a range of products approaching in the crypto space, it is important to have a responsible body in order to oversee the digital asset promotions. In this case, it is the Financial Conduct Authority. The UK financial sector aims to provide crypto with the same stature as any other asset class. Hence the authorities are working towards making this a reality. The proposal is currently in the consultation phase till October 25 wherein additions will be done after deeply understanding the minutiae of the digital financial ecosystem
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