Treasury Department Unveils ‘World’s First’ Cryptocurrency Regulation Proposal | Tech News

The U.S. Treasury Department has unveiled proposals to regulate cryptocurrencies amid widespread calls for action following the crash of one of the world’s largest trading exchanges.

The government has pledged to take a “robust” approach to digital assets in line with traditional finance, saying it wants exchanges to have fairer and stricter standards.

Under the plan, crypto platforms will be in charge of defining the requirements a currency must meet before it can be traded.

The exchange will also be responsible for safely facilitating transactions and safeguarding customer assets.

Previously, the deputy governor of the Bank of England told Sky News that cryptocurrency trading was “too dangerous” to escape mainstream regulation.

Given Crypto Platform FTX Sudden BankruptcySir Jon Cunliffe Describes the market as “incredibly volatile” And said investors need more protection.

About 80,000 UK customers affected by the collapse of the world’s second largest cryptocurrency exchange, a British investor There was a £1m shortfall in his finances.

Soardisgraced founder, Sam Bankman-FredSince Pleads not guilty to stealing billions of dollars in client funds.

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“Regulate cryptocurrencies before systemic problems arise”

Are the government’s plans enough?

The proposals – which Labor said came too late – come as the cryptocurrency industry tries to regain the confidence of panicked investors.

The world’s largest coin, Bitcoin, has seen broader market turmoil since the FTX crash, fell to a five-month low Major exchange Coinbase laid off 20% of its workforce.

Less than a year ago, Rishi Sunak, then Chancellor of the Exchequer, said he wanted the UK to Become a “Global Encryption Asset Center”.

Treasury Economics Secretary Andrew Griffith said the government remained committed to enabling encryption, but stressed the need to “protect consumers who are embracing this new technology”.

The plan is to go to consultation first, but the Treasury claims the regulation will be a “world’s first,” suggesting it should be introduced ahead of the EU’s expected 2024 crypto legislation.

At the same time, the Ministry of Finance announced that it will introduce a time-limited exemption to allow more crypto asset companies to trade in Crack down on ‘misleading’ ads.

Anti-money laundering firms registered with the Financial Conduct Authority will be allowed when wider regulation is introduced.

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What is the main goal of cryptocurrencies?

“We waited a long time”

Keystone Law partner and crypto fraud expert Louise Abbott welcomed the proposals.

She told Sky News that the lack of regulation of cryptocurrencies makes them “very attractive to fraudsters”.

“We’ve been waiting a long time in this industry,” she said.

“I deal with fraud and over the last 10 years I have seen a dramatic increase in cryptocurrency scams and scams. Last year I received inquiries every day from potential victims who were scammed through cryptocurrency scams.”

Ms Abbot hoped the regulation could be implemented as soon as possible in the summer, adding that it was in the interest of exchanges and investors to increase regulation of the market.

Major industry players including Binance CEO Changpeng Zhao, Who sees his platform banned in the UK in 2021And Coinbase’s Brian Armstrong has previously welcomed the prospect of increased regulation.

“Unless we become a safer environment, investors are not going to invest in the way we’ve seen,” Ms Abbott added.

Varun Paul, former fintech director at the Bank of England and now at crypto infrastructure provider Fireblocks, also described the plans as a “positive step.”

He told Sky News that industry turmoil meant “clear rules” were needed, and expressed hope that UK regulation would work while still encouraging innovation.

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