The government is proposing an approach to cryptoasset regulation under which firm requirements are designed and implemented by the independent regulators to ensure an agile regime able to respond to developments in the sector. The recent Financial Services and Markets Act included powers to bring stablecoins and cryptoasset activities within the FCA regulatory perimeter.

The FCA completed its Transformation Programme in March 2023 seeking to make the FCA a more innovative, assertive and adaptive regulator. It involved significant investment in the FCA’s systems and capabilities to enable better use of data and intelligence to regulate 50,000 firms effectively and efficiently. Further information on the delivery of the Transformation Programme is contained in the FCA Annual Report 2022-2023

The Government will continue to regularly discuss delivery of the Transformation Programme with the FCA to monitor progress.

The Government is committed to creating a regulatory environment in which firms can innovate, while crucially maintaining financial stability and clear regulatory standards so that people can use new technologies both reliably and safely. The Government believes that effective regulation will create the conditions for cryptoasset service providers to thrive in the UK, and give people and businesses the confidence to invest with an understanding of the often high risks involved.

The decisions about what products are offered and to whom remain commercial decisions for banks and building societies. Therefore, while the Government recognises and values the important role of this sector, it would be inappropriate for the Government to intervene in these decisions.  However, my officials will continue to engage with industry to understand any emerging issues.

The Government remains committed to supporting safe innovation within the cryptoasset sector, and HM Treasury recognises concerns about the impact of decisions taken by banks with respect to consumer payments to crypto businesses.

However, these are commercial, risk-based decisions driven by a range of factors, including compliance with financial crime obligations. As such, it would not be appropriate for the Government to intervene at this stage.

The Government is encouraging the crypto industry, in the first instance, to engage directly with UK banks, UK Finance and other relevant trade associations.

In parallel, HM Treasury is working towards a comprehensive regulatory framework for the cryptoasset sector which may influence decisions taken by UK banks with regards to controls or restrictions on payments.

The Government remains committed to supporting safe innovation within the cryptoasset sector, and HM Treasury recognises concerns about the impact of decisions taken by banks with respect to consumer payments to crypto businesses.

However, these are commercial, risk-based decisions driven by a range of factors, including compliance with financial crime obligations. As such, it would not be appropriate for the Government to intervene at this stage.

The Government is encouraging the crypto industry, in the first instance, to engage directly with UK banks, UK Finance and other relevant trade associations.

In parallel, HM Treasury is working towards a comprehensive regulatory framework for the cryptoasset sector which may influence decisions taken by UK banks with regards to controls or restrictions on payments.

The government has taken forward a series of regulatory measures to protect consumers, manage market integrity risks and support innovation. Since 2020 the FCA has been the anti-money laundering supervisor for cryptoasset firms. In January 2022 the government confirmed the intention to bring certain cryptoassets into the scope of the Financial Promotion Order to ensure that cryptoasset promotions are fair, clear, and not misleading.

Further, the government considers that some cryptoassets may already fall within the relevant UK legal frameworks. However, this also depends on the structure of the token and nature of the activities concerned.

At Fintech Week, the government set out the firm ambition to make Britain a global hub for cryptoasset technology and investment. We want to ensure firms can invest, innovate and scale up in this country. And we have announced a number of reforms which will see the regulation and aspects of tax treatment of cryptoassets evolve.

These include committing to consult on future regulation of a broader set of cryptoasset activities later this year; legislating to bring stablecoins into payments regulation; setting up a ministerial-chaired Cryptoasset Engagement Group, bringing together key figures in industry; working with the Royal Mint to create a Non-Fungible Token; and exploring ways of enhancing the competitiveness of the UK tax system to encourage further development of the cryptoasset market in the UK.

These commitments are in line with our objectives to create a regulatory environment in which firms can innovate, while crucially maintaining financial stability and regulatory standards so that people can use new technologies both reliably and safely.

HM Treasury has not made an assessment of the use of virtual currencies and the money laundering risks posed by the use of such currencies.

HM Treasury does not provide guidance to banks and businesses on the use of bitcoins.

HM Treasury has not made an assessment of the use of virtual currencies and the money laundering risks posed by the use of such currencies.

HM Treasury does not provide guidance to banks and businesses on the use of bitcoins.