United Kingdom: Consultation opened on UK regulatory approach to cryptoassets and stablecoins

On 7 January 2021, the UK government published a consultation on its proposed regulatory approach to cryptoassets and stablecoins. The consultation seeks views on how the regulatory framework can harness the benefits of cryptocurrencies, support innovation and competition and mitigate consumer risks. Further, the consultation includes a call for evidence on cryptocurrency investment and wholesale use, as well as the use of distributed ledger technology in financial markets. The consultation on the regulatory approach is parallel to the consultation on the application of the Financial Promotion Order to cryptocurrencies.