Wednesday, October 4, 2023

Cryptocurrencies, time for yes or no rules in Great Britain

Cryptocurrencies, time for yes or no rules in Great Britain. Time is running out for regulation in the cryptocurrency industry in the UK before the market is further de-risked.

Cryptocurrencies, Time For Yes Or No Rules In Great Britain

cryptocurrency regulations

Regulation is needed in the UK’s cryptocurrency industry, MPs have warned.

According to a report by the All Party Parliamentary Group for Crypto and Digital Assets, the government has just 12 to 18 months to introduce new crypto regulations before falling behind, as companies look to establish themselves and grow elsewhere.

“Other jurisdictions are making significant progress in providing legal and regulatory certainty and there is a real risk that the UK will be left behind by more advanced and friendlier foreign regulated markets for cryptocurrencies and digital assets,” the statement said.

“The government must move within a limited window of opportunity within the next 12 to 18 months to ensure early leadership within this sector.”

The report comes at a turbulent time for the UK crypto industry, with several banks preventing customers from transacting with crypto firms and trading platforms like OKEx snubbing London to set up a European hub in Paris. The government’s cities minister, Andrew Griffith, has said that the UK is committed to becoming a global crypto hub.


Crypto companies have a mixed approach to trying to solve regulatory problems in the UK. The heads of the world’s largest cryptocurrency exchange Binance have launched a lucrative offensive to help it secure an operating license from the UK financial watchdog, while the founders of London-based fintech Revolut, which offers cryptocurrency trading on its app , accused British regulators of failing. Create a “business environment for operating in the modern world”.

According to HMRC research published last year, one in ten UK adults own cryptocurrencies or digital assets, while 78% of UK adults have heard of cryptocurrencies and more now see them as a mainstream investment option. It is believed. An investigation by the Financial Conduct Authority.

crypto transaction

While the APPG found crypto crime to be low as a proportion of total transactions, the presence of online scams was still plentiful, and the FCA investigation also found that “the level of understanding of cryptocurrencies is falling, which suggests that some users may not fully understand what they are buying,” thus putting them at higher risk of falling prey to questionable cryptographic schemes.

Richard Cannon, Partner at Stokoe Partnership Solicitors, said: “With the rapid growth of the cryptocurrency and digital asset sector, it is vital that stronger regulation is introduced to reduce the risks of fraud and financial crime.

“Speed ​​is of the essence with this regulation, as the UK must move quickly to ensure that it delivers world-leading, comprehensive regulation that establishes the UK as a leader in crypto regulation and a financial and Consolidates its position as a technology hub.” ,

The report stands in stark contrast to the UK Treasury Committee, which last month dismissed crypto activity as akin to gambling and said the industry’s concrete benefits for the UK “remain unclear.”

“With no intrinsic value, high price volatility, and no apparent social good, consumer trading in cryptocurrencies like bitcoin looks more like gambling than a financial service, and should be regulated as such,” Harriet Baldwin. Said MP, Chairman of the Treasury Committee.

World Nation News Desk
World Nation News Desk
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