Financial Services: Regulation

Question

The Government launched a consultation on its regulatory approach to cryptoassets and stablecoins earlier this year. The government’s proposed approach would make sure cryptoassets known as stablecoins meet the same high standards we expect of other payment methods. The Government is considering responses and will outline next steps shortly.

In relation to other forms of cryptoassets, the Government has taken a series of actions to protect consumers, ensure market integrity and support innovation. Last year the Government consulted on a proposal to bring certain cryptoassets into financial promotions regulation. This would ensure that relevant cryptoasset promotions are held to the same high standards for fairness, clarity and accuracy that exist in the financial services industry. The Government will issue its response shortly. The Government has also launched a new anti-money laundering and counter-terrorist financing regime for cryptoassets.

Regarding Open Finance, the Government recognises that increased data-sharing has the potential to offer significant benefits to consumers by improving access to products and services that better meet their needs.

Following a consultation in September 2020, the Government announced plans to bring forward ‘Smart Data’ legislation to enable the Government to mandate data-sharing across sectors when Parliamentary time allows.