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UK to Regulate Crypto in Bid to Become Global Hub for Digital Assets
- The UK is pushing ahead with plans to legislate crypto next year.
- Crypto platforms in the country will need to follow the same rules as traditional financial services.
- Michael Saylor previously claimed Bitcoin could ‘10x’ with greater regulatory clarity.
The UK Government has confirmed its intention to make the country a ‘global hub’ for crypto by pushing ahead with plans to regulate digital assets.
Britain’s Treasury on Monday published its response to an earlier consultation on the future of crypto industry rules, announcing it intends to proceed with legislation early next year.
The plans would bring crypto exchanges under the same regime as traditional financial services and require them to be authorised by the UK’s city watchdog, the Financial Conduct Authority (FCA).
We must make the UK a place where cryptoasset firms have the clarity needed to invest and innovate, and where customers have the protections necessary for confidently using these technologies. The UK is the obvious choice for starting and scaling a cryptoasset business.
Andrew Griffith From Cautious Stance to Push for Crypto Innovation
The FCA previously has been criticised for being slow to register crypto exchanges in the country and famously claimed in 2021 that Binance was “not capable of being effectively supervised”.
But UK Prime Minister Rishi Sunak has consistently said he wants the UK to be a centre for crypto innovation. As chancellor, Mr. Sunak asked the country’s Royal Mint to create a non-fungible token, which would convey ownership of digital assets.
Earlier this month, the UK’s financial promotions regime was widened to include crypto exchanges for the first time amid warnings over the risks to consumers of investing in digital assets.
The strict new rules require platforms in the country to provide a 24-hour cooling off period to new customers before they are allowed to invest in digital assets. Last week it was revealed the FCA had already issued more than 200 alerts over firms illegally promoting crypto to UK consumers.
Greater regulation could lead to greater adoption
Nonetheless, many in the industry believe regulatory clarity is necessary to fuel the next wave of mass cryptocurrency adoption. MicroStrategy’s Michael Saylor earlier this year claimed that Bitcoin (BTC) would ‘10X’ with greater regulatory oversight.
Around 9% of UK adults owned crypto last year, according to FCA research. This compares to around a quarter of Australians.
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