UK plans to introduce crypto regulations within the next 12 months
The UK government is considering regulating exchanges, custody providers and lending firms. It aims to be the world’s hub for cryptocurrency asset innovation and a safe place for consumers and financial stability. The government has launched a public consultation on crypto regulation, asking whether the government should set out the framework through legislation or whether it should be set out by the Financial Conduct Authority (FCA).
The UK examines the potential full stack of crypto regulations within the next 12 months. The UK government is aiming to gain the status of the world’s crypto asset hub and has taken a different approach to crypto regulation compared to other countries. Primarily, the UK seeks to establish itself as a destination for crypto innovation and attract companies running businesses in the cryptocurrency sphere.
The UK is moving fast in order to create a clear regulatory framework for crypto activity. Several countries are competing to establish themselves as crypto-friendly destinations, while the United States has taken a stricter stance on cryptocurrencies. The UK now has the ability to control its own legislation and make important decisions on crypto regulation. The UK should move ‘in an agile and proportionate way’ about this, and the proposed new law will focus on key areas such as exchange, custody, and lending activities.
The period for government consultation on the regulations will conclude on April 30. Former UK finance minister and now Prime Minister, Rishi Sunak, expressed his desire last year to position Britain as a leading destination for crypto asset technology. The US SEC and CFTC have been pressing charges against US crypto companies and crypto exchanges.