Earlier this week, HM Treasury released proposals that would mean that parts of the crypto sector has to follow rules that currently apply to financial institutions, and would include the Financial Conduct Authority having greater oversight of the sector.

Across the Channel, the EU is already making great strides in the competition between jurisdictions to become global crypto hubs and lure crypto businesses, with its Markets in Crypto-Assets Regulation (MiCA) due to come into force in early 2024.

This new consultation clearly shows that the UK is keen to attract digital assets businesses into the country and London, but are the proposals timely and what are the challenges?

James Tyler spoke to the Financial Times about some of these challenges, including the fear of stifling innovation and the fact that the proposals are riding on a lot of political effort from the government.