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UK to Finalise Crypto Regulations by 2026; Morocco to End Crypto Ban
- The FCA in the UK is developing a crypto regulatory framework, aiming for full implementation by 2026.
- Crypto awareness in the UK has increased to 93%, with 7 million owners, although 10% invest without research and holdings average up to £1,842.
- Morocco, reversing a 2017 ban, has endorsed crypto adoption and is drafting laws for crypto assets, ranking 27th globally in crypto adoption.
- Morocco’s central bank is also reportedly considering a CBDC to potentially enhance financial inclusion.
United Kingdom financial regulator, the Financial Conduct Authority (FCA), is catching up on crypto regulation. While the European Union is already in the implementation phase of its Markets in Crypto-Assets Regulation (MiCA), the FCA has just released a study on crypto including a detailed road map.
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Shocking News: Not Everyone DYORing
According to their research, awareness of crypto increased from 91% to 93%, and ownership grew by 4%, now reaching 7 million people. Interestingly, 1 out of 10 people who bought crypto said they did no research before buying.
The average amount held is now £1,595 (AU$3,098) to £1,842 (AU$3,577), according to the FCA.
The report went on to say that as crypto is largely unregulated, people could expect to lose all their money.
Currently, crypto remains largely unregulated in the UK and high-risk. If something goes wrong, it is unlikely you will be protected so you should be prepared to lose all your money.
UK Financial Conduct Authority In its roadmap, the FCA hopes to get feedback in discussion papers and consultation papers on topics such as stablecoins, trading platforms, staking and lending, and custody and other topics. Final comments and statements are expected by 2026, which is when the regime is projected to go live.
Legalise it, Don’t Criticise it
As regulations move along globally, some of the staunchest critics seem to have a change of heart. Morocco, which outright banned cryptocurrencies in 2017, has just greenlighted crypto adoption.
Despite the ban, crypto is popular in Morocco, which ranks 27th in Chainalysis’ global crypto adoption index with US$12.7 billion (AU$19.58 billion) of value received, as per a recent report.
According to Reuters, Abdellatif Jouahri, the governor of Morocco’s central bank – the Bank Al Maghrib – said they’re currently working on draft legislation for regulation of crypto assets.
Related: Tokenised Money Market Fund Coming to XRP Ledger, Says Ripple
Speaking at an international conference in Rabat, Jouahri said a central bank digital currency (CBDC) is also in discussion.
Regarding central bank digital currencies, and like many countries around the world, we are exploring to what extent this new form of currency could contribute to achieving certain public policy objectives, particularly in terms of financial inclusion.
Abdellatif Jouahri, governor of Morocco’s central bank CBDCs are central bank-controlled digital currencies, contrary to decentralised ones like Bitcoin and Co, and are understandably unpopular in crypto circles.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
