The British government announced on Monday that it is moving forward with its plan to regulate the cryptocurrency industry by next year. In response to a consultation paper earlier this year, the UK government confirmed that it would establish clear regulations to govern the use of cryptocurrencies in the country, starting with stablecoins.
The document published was in response to a consultation paper that called for clear regulations of the digital asset industry, highlighting the response of the HM Treasury on the issue. The UK government released the consultation paper on February 1 and closed it on April 30, 2023.
Finally, Clear Regulations
As outlined in the published document, the proposed regulations would encompass cryptocurrency offerings, the issuance of stablecoins, the operations of trading platforms, and the management of custodian and lending services firms.
The Treasury stated that it developed these regulations in light of recent events, including the collapse of the cryptocurrency exchange FTX. The Treasury also noted its intention to integrate these guidelines into existing market laws rather than establishing them as a separate regime.
The response from HM Treasury stated that the regulatory regime should exclude digital asset areas such as NFTs from its scope. The Treasury also recommended a cautious approach to decentralized finance (DeFi) and ruled out airdrops for the time being.
Taking the Lead
Unlike its American counterpart, which has consistently criticized the sector, the British government has continued to support digital innovations. Even prior to official regulations, UK regulators have created an environment that encourages crypto innovation to flourish.
In a statement, the Minister of Financial Services, Andrew Griffith, expressed his desire to see the UK become a global hub for cryptocurrency technology.
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Regulation
United Kingdom
