UK tries to apply banking rules to crypto activities
The UK intends to regulate crypto asset activities, including trading, lending and custody, under the same regime as traditional financial services.
The UK government is opening a consultation on a set of sweeping new rules for the crypto sector, the country’s Treasury said in a statement.
The proposed guidelines would include an obligation for exchanges to write detailed listing standards and disclosure requirements for token issuers when listing new assets.
The plans would resemble crypto exchanges, multilateral trading facilities operated by LMAX Group and TP ICAP — a type of alternative asset trading venue — said a person familiar with the matter, who was not authorized to discuss it publicly.
The UK also plans to tighten rules for financial intermediaries and custodians of digital assets, requiring all companies to comply with regulatory rules and standards for data reporting, consumer protection and operational resilience.
The consultation was published on Wednesday and will seek answers until April 30th.
The push to implement stricter rules in the UK comes at a time of turmoil in the crypto sector, which has been marked by a series of high-profile meltdowns, bankruptcies and scandals.
The slump in token prices and platform outages over the past year have seen investors lose billions of dollars and regulators around the world have tightened their scrutiny of the asset class.
Recent criminal charges against Sam Bankman-Fried, former CEO of major crypto exchange FTX, have further heightened concerns over whether crypto companies offer adequate customer protections.
Mr. Bankman-Fried is said to have allowed FTX’s sister trading platform, Alameda Research, unrestricted access to client funds for their own purposes while also borrowing from the firm for his personal benefit.
https://www.independent.ie/business/uk-looks-to-apply-banking-rules-to-crypto-activity-42323984.html UK tries to apply banking rules to crypto activities