Conventional finance Lobby Groups sound alarm bells over UK cryptocurrency regulation – Cryptopolitan

The UK government has received warnings from prominent lobby groups in the conventional finance sector regarding its plans to regulate the cryptocurrency industry. These groups have expressed concerns and cautioned against legitimizing a market they believe carries consumer risks.

In a proactive move, the United Kingdom government initiated a consultation process, seeking the opinions of UK citizens and financial institutions on regulating cryptocurrency within the country. In February, the government released an 82-page consultation paper inviting stakeholders to contribute their valuable insights.

This step showcases the government’s commitment to actively engaging with the industry and the public, fostering a comprehensive and inclusive approach to shaping crypto regulation in the UK.

The proposal puts forth a clear emphasis on strengthening the dialogue between regulators and crypto companies in the United Kingdom, with the ultimate goal of establishing the country as a thriving hub for sustainable finance. It highlights the government’s proactive approach to actively engaging with the industry and fostering an environment that encourages healthy collaboration. 

By nurturing this dialogue, UK regulators aim to create a competitive landscape that addresses the crypto sector’s challenges and leverages its long-term growth and development potential.

The Institute of Chartered Accountants in England and Wales (ICAEW) suggests that regulation grants customers a certain level of trust without having to earn it.

Additionally, it states that when regulatory bodies widen their scope and grant authorization to firms engaged in crypto-related activities, consumers may reasonably infer that the recognized risks associated with crypto assets have been adequately addressed or controlled to some degree.

The UK’s Tax Authority is actively exploring the possibility of implementing regulations that would empower the agency to seize crypto assets from businesses that have neglected their tax obligations.

This proactive step aims to ensure that businesses fulfill their tax responsibilities and comply with the law while also signaling a commitment to holding accountable those who may seek to evade tax obligations through the use of crypto assets.