Signal Treasury proceeding with a cryptoasset regulatory regime from November 2024

Summary

In November 2024 the Treasury confirmed it was moving ahead with proposals for a new financial services regulatory regime for cryptoassets. The report presents this, together with the cryptoasset financial promotions rules in force since October 2023, as a UK mitigation against the risks of emerging financial systems. It diagnoses that the complexity, anonymity and limited regulation of cryptoassets have opened channels for money laundering, sanctions evasion and the funding of organised crime, terrorism and fraud. Consumer cryptoassets do not enjoy the legal protection of traditional banking and are exposed to hacks and bankruptcies. The report believes that without proper regulation, cryptoassets could fuel organised crime, strain policing and health services and weaken social cohesion.