The UK government has outlined plans to regulate the cryptocurrency industry, focusing on consumer protection and controlling financial intermediaries and custodians who store crypto assets on behalf of clients.

The proposed regulation also aims for strict transparency requirements for crypto exchanges, allowing only FCA-registered companies to advertise their products and publishing details about approved digital trading assets.

The Financial Services and Markets Bill, which seeks to make the UK’s financial industry more competitive post-Brexit by legalizing cryptocurrency assets as regulated products, is yet to appear in Parliament and is expected to take years to be approved.

Despite this, the UK’s regulatory move is seen as necessary for the country to become a crypto hub and for the cryptocurrency industry to have robust and transparent standards.