Joining jurisdictions around the world, the UK has recognised that disrupting technologies and failures in the cryptoasset arena have highlighted the need for regulation, not just to protect investors and maintain financial stability, but also to recognise the changes technology has made to the financial services sector.
In February 2023, the UK became one of the latest jurisdictions to set out plans to regulate cryptoassets and pave the way for a central bank digital currency.
As with other jurisdictions, the aim is to regulate the use of disruptive technologies, thereby ensuring that new products fit into the current regulatory framework.
This is a rapidly developing arena. Indeed, between writing this article and its publication, further rules and guidance have been issued by IOSCO, the SFC, and the International Institute for the Unification of Private Law.