The UK to introduce new cryptocurrency regulatory framework soon

The United Kingdom government is planning to announce its cryptocurrency regulatory framework in the near future, according to a recent report published by CNBC.

Collaboration for law-making

Treasury authorities have been collaborating with cryptocurrency entrepreneurs and trade associations to develop sensible laws. Gemini, a well-known cryptocurrency exchange founded by the Winklevoss twins, is expected to be mentioned.

Treasury officials are said to have attempted to learn the ins and outs of advanced cryptocurrency products like stablecoins.

The Bank of England (BoE) began work on Britain’s first regulatory framework earlier this week, according to Reuters.

Despite significant growth in the UK and other nations over the past year, cryptocurrencies remain mostly unregulated for the time being.

Despite the widespread use of cryptocurrency, the Financial Policy Committee (FPC) of the Bank of England found that it has not yet posed a threat to the country’s financial stability.

Crypto’s unfettered expansion, on the other hand, may become riskier in the future.

Will it benefit investors?

The proposed regulatory framework’s major goal is to eliminate the regulatory uncertainty that continues to plague the business.

According to the report, the new crypto guidelines will be beneficial to crypto businesses and investors, citing persons with knowledge of the situation.

Reduce the risks of bitcoin

The Bank of England urged states to widen regulatory frameworks to reduce the risks of bitcoin to financial stability on Thursday.

BOE Deputy Governor Sam Woods noted in a letter to numerous bank CEOs that banks and financial institutions have expressed “growing interest” in “entering various crypto marketplaces.”

The action is considered a response to President Joe Biden’s executive order, which asked for coordination between numerous US federal agencies on crypto policy, according to the sources. Several industry insiders have criticized the United Kingdom’s lack of such measures.

A number of businesses, including Revolut, Blockchain.com, and Copper, could be forced to shut down their crypto activity in the UK this week if they don’t get it into By March 31, the Financial Conduct Authority (FCA) will have completed its crypto-asset registration.

A “substantial percentage” of crypto companies, according to the FCA, fail to meet anti-money laundering regulations. There are only 33 firms on the list. More than 80% of companies reviewed by the regulator have had their applications withdrawn or refused.

ALSO READ: What is Google’s Blockchain known as?

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing