Growth in the crypto asset market has prompted the government to think about regulation which it believes will mitigate the risks of such a turbulent industry. Last November saw the collapse of a crypto exchange called FTX, which took over $8bn of customers' money with it.
"The consultation closes on the 30th of April 2023!"
The Treasury has been thinking of crypto regulation for a while now. There have been rumours of a UK digital currency, but in the short term, it's about harnessing the advantages of crypto technologies which could help the sector grow and create jobs.
The Government says it remains steadfast in its commitment to growing the economy, but it must also protect consumers who are embracing this new technology, ensuring robust, transparent and fair standards.
The proposals also include safeguards to strengthen the financial rules for intermediaries and custodians who have responsibility for facilitating transactions and storage of customer assets.
I do welcome the Government's consultation and it's positive to see the proposed regulations cover more than just cryptocurrency itself. The regulations need to have the correct scope and the consultation is helping with that!
There are many failings in the crypto sector, from money laundering and fraud to loss of assets by investors, so for crypto to have a future, it needs regulating. The Government's roadmap is ambitious, but it does remain to be seen how fit for purpose any final legislation is.
Until next time ...
ROGER EDDOWES Business Godparent
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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