UK Sets The Stage For New Crypto Regulation With Draft Rules On Exchanges And Stablecoins
On Tuesday, the United Kingdom took a significant step toward regulating the cryptocurrency industry by publishing a draft law aimed at establishing a comprehensive regulation framework for digital property.
Speaking at an event in Fintech, UK Minister Rachel Reeves emphasized the government's promise to make the UK a leader a leader in global Digital Assets Space while taking care of more cooperation with the United States.
New crypto regulations in the UK
The suggested regulations are designed to bring cryptocurrency exchanges, entrepreneurs, and regulatory agents to fold, address concerns with evil actors and ensure that legitimate change may develop.
According to a statement From the UK treasury, companies that operate on UK customers are required to comply with the standards of transparency, consumer protection, and operational stability – similar to the requirements imposed on traditional financial institutions.
In his address, Reeves emphasized the importance of international cooperation in achieving the UK's ambition leading to digital ownership. “For the UK to become a world leader in digital ownership, international cooperation is important,” he said, referring to his recent discussions with Treasury Secretary Scott Bessent about a potential Trade Deal.
The financial minister reiterated the government's stance that the regulation should support business growth rather than prevent it. “Regulation should support the business, not prevent it,” he said, signed his commitment to creating an atmosphere consistent with change while maintaining strict supervision to protect consumers.
Concerns grow in the restriction process of fca approved
Industry insiders have expressed concerns about the Financial Conduct Authority (FCA), the UK financial service guardian, which has been criticized for its restriction approach to approved registrations for Digital asset companies.
The FCA is responsible for regulating companies that provide crypto services in compliance with monetary laundering regulations. As the UK progresses with its regulation framework, it is hoping that the FCA will adopt a more balanced approach that encourages growth while ensuring compliance.
Reeves also announced plans to launch the first financial service growth and competitiveness strategy on July 15, in conjunction with his speech at the mansion's home. This approach aims to support long-term growth in the financial service sector, identified by FinTech as a priority area for investment and development throughout the UK
The government aims to end the crypto asset law Soon, engage in industry stakeholders to refine draft provisions.
This method aims to create a regulatory environment that not only enhances the investor's confidence but also protects consumers from fraud and bustling in the market.
Featured image from shutterstock, chart from tradingview.com
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