The Cryptoassets task force, led by Treasury, has published its report on the UK’s policy and regulatory approach to cryptoassets. The report looks at the policy and regulatory implications of DLT and cryptoassets and comments on the considerable risks as well as the potential benefits.
Now the Task force will consult on a number of initiatives, specifically:
- perimeter guidance to clarify what falls within the scope of regulation and what may fall outside;
- whether the perimeter should be extended to cover instruments currently outside it but comparable to those within it;
- a potential ban on selling derivatives referencing certain types of cryptoasset to retail investors;
- the challenges and risks exchange tokens pose and how these, and exchange and wallet providers, could be regulated effectively; and
- putting in place measures to respond to illicit activities that go further than MLD5.
The first of these consultations is due before the end of the year, with others during next year.