The department of Britain’s finance ministry came with robust regulations for crypto assets, following the collapse of the crypto exchange FTX last year in which millions of people lost billions of dollars. 

However, regulation of crypto-assets could create a one-sized approach that could hinder innovation.

The treasury department published a consultation document today, to bring cryptocurrency-related activities under the ambit of governing traditional financial services. 

The ministers said that the new regulations will "mitigate the most significant risks of crypto assets while harnessing their advantages". As per the data from ministers, up to 10% of UK adults now own some form of crypto. 

The government is planning to use existing rules and regulations for the industry, rather than creating a whole new regime. The Treasury Department reported regarding the regulations that it will allow crypto to benefit from the "confidence, credibility and regulatory clarity" of the existing system for financial services, as set out in the UK's Financial Services and Markets Act 2000 (FSMA). 

Economic Secretary Andrew Griffith reported that the government remained "steadfast in our commitment to grow the economy and enable technological change and innovation - and this includes crypto-asset technology. But we must also protect consumers who are embracing this new technology - ensuring robust, transparent, and fair standards". 

The Treasury Department proposed in its consultation document the following: 

1. It will make laws and regulations on crypto-asset promotions which will be fair, clear, and not misleading. 

2. It will also enhance data-reporting requirements, including with regulators. 

3. Furthermore, it will implement new laws to stop so-called pump and dump, or lie and sell high where an individual artificially inflates the value of a crypto asset before selling it. 

Conservative MP Harriett Baldwin, who chairs the Treasury Committee, said, "truly Wild West behavior, valuable technological innovation happening that could benefit the UK economy". We are paying close attention to these plans and to the regulators' plans because we would not want our constituents to think cryptocurrencies are any less risky if they are regulated".