The UK is ready to pass new laws regulating crypto assets such as stablecoins and activities like staking, trading, and safekeeping.
In simple terms, new rules regarding digital assets like cryptocurrency exchanges and wallets for storing customer funds, which are projected to take effect between June and July 2024, represent a pivotal moment as they establish regulatory control over these areas for the first time.
After the Financial Services and Markets Act was authorized in June 2023, cryptocurrencies were given the status of regulated financial activities. This recent advancement is consistent with that approval.
Crypto Regulation Accelerates In The UK
The UK’s Economic Secretary, Bim Afolami, reinforced the government’s determination to expedite the handling of cryptocurrency-related matters at the Innovate Finance Global Summit. He underscored that legislation is being crafted with great speed to conclude plans for the upcoming regulatory framework.
The government intends to finish these projects within the following 6 months, enabling various digital asset transactions to fall under regulatory supervision. The Economic Secretary announced this, covering the operation of exchanges and safekeeping services among others.
For the first time, crypto asset activities such as managing an exchange and safeguarding client funds will be subject to regulation once they become active.
Additionally, the Financial Conduct Authority (FCA) in the UK is set to initiate a consultation regarding the licensing of digital asset businesses. In parallel, the government intends to implement frameworks for recognizing the regulatory standards of foreign companies.
Our goal is to establish a controlled and monitored setting for this new industry, focusing on safeguarding consumers and maintaining market honesty.
Balancing Innovation And Safeguards
Previously, Bitcoinist shared that the UK government is approaching digital asset regulation in stages with a major focus on laws surrounding stablecoins backed by fiat currency.
After giving priority to this matter, we’ll then focus on other aspects such as algorithmic stablecoins, lending, and trading. These areas will be subjected to the existing regulatory frameworks in traditional finance.
Instead of taking a strict and more aggressive stance like the US Securities and Exchange Commission, the UK government acknowledges the importance of having clear regulations. They plan to establish a regulatory system that supports innovation while also safeguarding investors.
Despite the British government’s attempts to make the country welcoming towards cryptocurrencies, the sector in the UK has encountered obstacles. Digital currency companies, such as exchanges, have raised issues with the Financial Conduct Authority (FCA) over lengthy waiting periods and insufficient responses.
More recent regulations limiting digital asset advertising have caused some notable businesses to reduce or halt their activities in the UK market. The Financial Conduct Authority (FCA) has been active in cracking down on suspected illicit crypto promotions, issuing over 450 warnings within a three-month period in February 2024.
Despite this, the upcoming regulations on stablecoins and crypto activities demonstrate the British government’s dedication to creating a controlled and monitored crypto sector.
The details of the upcoming crypto asset regulations remain undisclosed, but it’s certain that they will be subject to a clearer and more specific regulatory structure.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- USD COP PREDICTION
- MNT PREDICTION. MNT cryptocurrency
- Ethereum (ETH) Crashes Dramatically, What’s Next? Solana (SOL) Can Still Reach $200, XRP Struggling Before $0.63 Test
- SOL PREDICTION. SOL cryptocurrency
- Lucky Animal Crossing: New Horizons Player Discovers Infinite Clam Glitch
- I Physically Need WWE 2K25’s Showcase to Feature The Bloodline
- Cardano Enters Chang Hard Fork Era With Node 9.1.0 Upgrade
- Destiny 2 Player Transforms Their Warlock Into Team Fortress 2’s Medic
2024-04-16 04:11