Chancellor Rachel Reeves confirmed last month that legislation bringing cryptoassets under similar rules to those for other regulated financial products like stocks and shares will be in force from next year. Consequently, cryptoasset firms will need to be regulated by the Financial Conduct Authority.
However, George Morris, partner at Simmons & Simmons, urged the government not to move too far too fast.
‘We must be careful in the UK to recognise that the cryptoassets industry is still growing and will need time to respond to the new rules, rather than forcing an “overnight upgrade”, which will deter firms from engaging with the new rules,’ Morris said. ‘Proportionality and pace are key so that firms can adapt, or we risk companies seeing the learning curve as too steep to justify tackling it.’
