The UK government is to publish draft crypto regulation rules today.
The proposals from HM Treasury are set to ensure the return of assets to customers in the event of the bankruptcy of a cryptocurrency exchange.
Further specific rules will be applied to ‘financial intermediaries and custodians’.
The draft rules, set for a three-month public consultation, will also target misleading cryptoasset promotions, enhance data-reporting requirements and seek to prevent ‘pump and dump’ where an individual inflates the value of a cryptoasset then sells it.
The Treasury said the rules will “regulate a broad suite of cryptoasset activities, consistent with its approach to traditional finance”.
There have been widespread calls for regulation following the high-profile collapses of exchange FTX, the Terra blockchain and its Luna and UST cryptocurrencies, and lender Celsius Networks.
Once ministers have considered views garnered from the public consultation – set to end on April 30th – the Financial Conduct Authority will draw up the regulations.