The finance ministry said it would apply anti-money laundering and counter-terrorism financing rules to cryptoassets, and would work with the Bank of England and the Financial Conduct Authority to develop a comprehensive approach.
Britain’s finance ministry has announced its first set of rules to regulate cryptoassets, saying that the collapse of exchange FTX last year highlighted the risks that need addressing. The finance ministry stated that it would apply anti-money laundering and counter-terrorism financing rules to cryptoassets, and would work with the Bank of England and the Financial Conduct Authority to develop a comprehensive approach.
The new rules would cover crypto-related admission to a trading platform, making sure that only authorized participants are able to trade digital assets. Financial Services Minister Andrew Griffith believes that this will help to reinforce the case for clear, effective, timely regulation and proactive engagement with industry.
Crypto firms in Britain or those providing services to the UK will need to comply with new rules. These proposals mark a step-change in the direction of UK regulatory policy relating to cryptoassets and it is now clear that a regulatory wave will hit the sector.
This will include minimum capital and liquidity requirements, as well as a licence from the Financial Conduct Authority. Foreign operators providing services to British customers will also need to comply, although it will be up to the FCA to decide if a physical presence in the UK is required.
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