Consultation outcome

Future financial services regulatory regime for cryptoassets

From:: HM Treasury
Published: 1 February 2023
Last updated: 30 October 2023 — See all updates

Read the full outcome

Response to the consultation and call for evidence on the future financial services regulatory regime for cryptoassets

PDF, 880 KB, 94 pages

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Detail of outcome

The government has confirmed its final proposals for cryptoasset regulation in the UK, including its intention to bring a number of cryptoasset activities into the regulatory perimeter for financial services for the first time. This document provides the government’s response to the consultation and call for evidence on the future financial services regulatory regime for cryptoassets, which was published on 1 February 2023 and closed on 30 April 2023. It summarises the feedback received by HM Treasury in response to the consultation, and details how this has influenced further development of the government’s approach.

The UK remains committed to creating a regulatory environment in which firms can innovate, while crucially maintaining financial stability and clear regulatory standards so that people can use new technologies both reliably and safely.

Original consultation

Consultation description

In April 2022, the government committed to introducing a new regulatory regime for cryptoassets, reflecting the risks and opportunities they present.

This consultation paper sets out proposals for this future regime and marks the next phase of the government’s approach to regulating cryptoassets. It builds on previous HM Treasury proposals, which focussed on stablecoins and the financial promotion of cryptoassets.

The proposals seek to deliver on the ambition to place the UK’s financial services sector at the forefront of cryptoasset technology and innovation and create the conditions for cryptoasset service providers to operate and grow in the UK, whilst managing potential consumer and stability risks.

The government’s proposed measures have been informed by recent market events – including the failure of FTX – which reinforce the case for effective regulation and sector engagement.

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