UK Confirms Formal Legislation to Govern Crypto by 2024

written by

In a recent revelation, the UK government has expressed its intent to usher in a new era of cryptocurrency regulation, setting a timeline that stretches out to 2024. This initiative has its roots in a consultation paper that sought to gather diverse perspectives on how the crypto sphere should be regulated. With a myriad of opinions from fintech companies, traditional financial firms, and the general public, the government aims to craft a regulatory framework that resonates with the dynamic nature of crypto assets. This move, steered by Financial Services Minister Andrew Griffith, is not just about creating rules but fostering the UK’s standing as a formidable hub for crypto asset technology.

TL;DR:

UK government eyes crypto regulation by 2024 based on diverse stakeholder feedback.
The initiative encompasses stringent rules for crypto exchanges, custodians, and lending companies.
The regulatory move aims to bolster the UK’s position as a crypto-technological hub.
Compared to the EU and the US, the UK’s proactive stance highlights a global shift towards crypto regulation.

Regulatory Framework Unveiled:

The UK government’s proactive stance unveils a roadmap towards bringing crypto assets under the regulatory umbrella that shields traditional financial services. The envisioned regulations, although not fully articulated, hint at a more stringent framework for crypto exchanges, custodians managing crypto assets for clients, and companies entrenched in crypto lending. By aligning crypto operations with established financial regulations, the UK is not only legitimizing the crypto industry but also mitigating the market abuse and disclosure issues that often plague the crypto sphere.

Comparative Global Stance:

While the EU has laid down a clear framework through its MiCA (Markets in Crypto-Assets) regulation, the UK’s stride towards regulation appears more pronounced compared to other tech-leading nations, especially the US. With numerous bills still meandering through Congress, the US’s cautious approach starkly contrasts with the UK’s proactive regulatory venture, underscoring the pressing global necessity to weave through the crypto regulatory conundrum.

Conclusion:

The UK’s assertive steps towards crafting a crypto regulatory framework by 2024 underscore a global shift in recognizing and accommodating the burgeoning crypto industry. As the specifics of the UK’s regulatory proposals await unveiling, the ripple effects of this initiative could catalyze a more harmonized global approach towards crypto regulation, nudging other nations to expedite their regulatory agendas. The UK’s endeavor, thus, is not merely a domestic affair but a significant cue for the global community to embrace the crypto evolution with well-articulated regulatory frameworks.

Source: CNBC

NFTpay

Our mission is to bring 1 Billion people to Web 3.0 and democratizing access to NFTs and Web3 for everyone. We seek to give creators the easiest and most seamless way to connect to more buyers and help people access the new world of Web3.