HM Treasury’s latest consultation on cryptoasset promotions closed at the end of October, and its findings are due to be published very shortly. In the meantime, HM Treasury has published a consultation paper on the regulation of cryptoassets and stablecoins (Thursday 7 January 2021).
This paper is the first stage in HM Treasury’s consultation process with industry and stakeholders on the broader regulatory approach to cryptoassets and stablecoins. It seeks views from a range of stakeholders (particularly firms engaged in cryptoasset or distributed ledger technology (DLT) activities) on how the UK can ensure its regulatory framework is equipped to harness the benefits of new technologies, and support innovation and competition, while also mitigating risks to consumers and ensuring stability. If the proposals are adopted, further consultations and guidance on implementation, including specific firm requirements will be issued by HM Treasury, the Financial Conduct Authority (FCA), the Payment Services Regulator (PSR) and the Prudential Regulation Authority (PRA).