UK set to carve out its own path for crypto regulation post-Brexit
The proposed new crypto regulations are expected to provide greater clarity for firms operating in the space.
As the United Kingdom continues to navigate its post-Brexit future, the government is taking advantage of its newfound autonomy to create a crypto regulation framework.
In an interview with CNBC on April 17, the Economic Secretary to the Treasury, Andrew Griffith, stated that the government plans to introduce specific crypto regulations within the next year. While speaking on Britain’s exit from the European Union (EU), Griffith stated:
“We’ve got control back of our rulebook, not something the U.K. has had for decades. So we’ve got the ability to move in an agile and proportionate way. And I’m definitely keen we make the most of that opportunity.”
Britain aims to position itself as a destination for crypto innovation
Britain is poised to establish a clear regulatory framework for crypto activity, with the aim of becoming a secure hub for the industry. The proposed new law will focus on key areas such as exchange, custody, and lending activities and provide greater clarity for firms operating in the space.
The consultation process for these regulations will conclude on April 30, and it is expected that the new framework will stimulate innovation and expansion in the crypto industry while also ensuring that the safety of consumers and financial stability are safeguarded.
Former UK finance minister, now Prime Minister, Rishi Sunak expressed his desire last year to position Britain as a leading destination for crypto asset technology on a global scale. Sunak made headlines in the UK parliament when he requested the Royal Mint, the producer of UK coins, to explore creating non-fungible tokens (NFTs) to showcase the country’s dedication to delving into the world of cryptocurrency technology. However, the proposal was eventually dropped.
Crypto regulation across the world
As digital currencies continue to gain traction globally, several countries, including Dubai and Singapore, are competing to establish themselves as crypto-friendly destinations for firms. By creating a regulatory framework that encourages growth and innovation in the industry, these jurisdictions hope to attract more businesses and boost their economies.