UK Crypto Firms To Get Broad Laws

Proposed laws in the United Kingdom to regulate cryptocurrency indicate that the country may overtake its rival, the European Union, in the race to govern the sector.

A long-awaited consultation, originally scheduled for before Christmas, was released on February 1st.

It proposes a new authorization regime for any company operating from the United Kingdom or serving local clients - and has received an immediate, and overwhelmingly positive, response from the industry.

International crypto exchange Binance also said it welcomed the plans.

The U.K. Treasury has previously stated that it wants to make the country a crypto hub, with new rules needed to restore confidence after a turbulent 2022 - but firms that have already battled through a lengthy regulatory process to secure registration for money laundering purposes will dread having to go through it all again.

The Treasury argued that crypto should be brought under existing rules laid out in the Financial Services and Markets Act (FSMA) dating back to 2000, rather than a bespoke regime like the one introduced in the EU by the Markets in Crypto Assets regulation (MiCA), which would overlap, distort competition, and create confusion.

(With inputs from Shikha Singh)

1 months ago