The UK government has proposed measures to regulate the cryptocurrency industry in an industry consultation held on Tuesday.
The main focus is on regulating financial intermediaries and custodians who store crypto assets on behalf of clients, which was a major contributor to the crashes of crypto businesses last year such as FTX.
The proposal aims to protect consumers, enhance operational resilience of firms, and enforce transparency requirements on crypto exchanges.
The UK government also intends to limit crypto advertisements to only companies with Financial Conduct Authority (FCA) registration.
The Financial Services and Markets Bill, which legalizes cryptocurrency assets as regulated products, is still pending in parliament.
The regulation of the crypto industry is seen as necessary by experts, with the CEO of Zodia Custody stating it will be useful for the UK to be a crypto hub. The cryptocurrency market remains steady above the $1 trillion mark.
