Miscellaneous Cryptoassets
The government’s view is that cryptoasset technologies could have a profound impact across the financial services sector. At present most cryptoasset activities in the UK are not subject to comprehensive financial services regulation. This gives rise to a range of risks, including to consumers, market integrity and potentially to financial stability. It may also prevent UK firms and consumers from realising the possible benefits of cryptoasset technologies, including new products and services.
	The government has proposed a staged approach to regulation, which is sensitive to risks posed and responsive to new developments in the market. HM Treasury’s response to its consultation , published in April 2022, outlined the government’s intention to bring stablecoins, where used as a means of payment, into the regulatory perimeter. Alongside, the government confirmed that the market has developed sufficiently to move ahead with regulating a broader set of cryptoasset activities.
	Section 69, alongside new section 71K(7) of FSMA 2000 as inserted by section 8 of this Act, clarifies that HM Treasury has the necessary powers to regulate a range of cryptoasset activities, particularly those relating to the trading and investment of cryptoasset tokens.
	In due course and ahead of using these powers, HM Treasury will consult on an approach which enables firms to innovate, while maintaining financial stability and clear regulatory standards so that people can use new technologies both reliably and safely.