{"id":452073,"date":"2022-05-24T17:47:00","date_gmt":"2022-05-24T14:47:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/enforcement-and-adoption-what-do-uks-recent-regulatory-aims-for-crypto-mean\/"},"modified":"2022-05-24T17:47:00","modified_gmt":"2022-05-24T14:47:00","slug":"enforcement-and-adoption-what-do-uks-recent-regulatory-aims-for-crypto-mean","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/enforcement-and-adoption-what-do-uks-recent-regulatory-aims-for-crypto-mean\/","title":{"rendered":"# Enforcement and adoption: What do UK\u2019s recent regulatory aims for crypto mean?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a33670925c3b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a33670925c3b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/enforcement-and-adoption-what-do-uks-recent-regulatory-aims-for-crypto-mean\/#%E2%80%9D_Enforcement_and_adoption_What_do_UKs_recent_regulatory_aims_for_crypto_mean_%E2%80%9C\" >&#8221; Enforcement and adoption: What do UK\u2019s recent regulatory aims for crypto mean? &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/enforcement-and-adoption-what-do-uks-recent-regulatory-aims-for-crypto-mean\/#The_Treasurys_affair_with_stablecoins\" >The Treasury\u2019s affair with stablecoins<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/enforcement-and-adoption-what-do-uks-recent-regulatory-aims-for-crypto-mean\/#Seize_and_recover\" >Seize and recover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/enforcement-and-adoption-what-do-uks-recent-regulatory-aims-for-crypto-mean\/#%E2%80%9CA_huge_step_for_the_UK%E2%80%9D\" >\u201cA huge step for the UK\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/enforcement-and-adoption-what-do-uks-recent-regulatory-aims-for-crypto-mean\/#Make_Britain_great_again\" >Make Britain great again?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Enforcement_and_adoption_What_do_UKs_recent_regulatory_aims_for_crypto_mean_%E2%80%9C\"><\/span>&#8221; Enforcement and adoption: What do UK\u2019s recent regulatory aims for crypto mean? &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>In April, the United Kingdom\u2019s Economic and Finance Ministry, also known as Her Majesty\u2019s Treasury, announced its intention to put the United Kingdom at the forefront of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> by bringing stablecoins under the country\u2019s payments regulation \u2014 a bold move that looks especially intriguing in contrast to the recent shock, caused by TerraUSD\u2019s (UST) depegging. <\/p>\n<p>Later, in May, during the annual Queen\u2019s Speech, Prince Charles informed the Parliament about two bills that will support \u201cthe safe adoption of cryptocurrencies\u201d and \u201ccreate powers to more quickly and easily seize and recover crypto assets.\u201d<\/p>\n<p>Taken together, these initiatives give an impression of the nation\u2019s growing interest in digital assets, which comes as no surprise, given the inevitable competition for innovation with the European Union. <\/p>\n<p>The last few months were busy for crypto in Great Britain. Besides some important precedents being set such as the High Court\u2019s decision to recognize nonfungible tokens (NFTs) as property or the listing of Grayscale\u2019s first European ETF on the London Stock Exchange, we witnessed some major announcements by regulators.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Treasurys_affair_with_stablecoins\"><\/span>The Treasury\u2019s affair with stablecoins<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In its announcement on April 4, following a several-month public consultation, the Treasury acknowledged that certain stablecoins could become \u201ca widespread means of payment\u201d for retail customers. It also stated its readiness to \u201ctake the necessary legislative steps\u201d to bring stablecoins into a comprehensible regulatory framework.<\/p>\n<p>As the head of tax at Koinly, Tony Dhanjal, explained to Cointelegraph, this announcement should be regarded as huge <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> or even a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>-changer because it will lead to the reclassification of stablecoins in the U.K.:<\/p>\n<blockquote><p>\u201cOnce stablecoins are no longer subject to capital gains tax, spending crypto could become a lot more widespread and we could see the adoption of crypto as a means of payment in mainstream industries.\u201d<\/p><\/blockquote>\n<p>The intentions <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/assets.publishing.service.gov.uk\/government\/uploads\/system\/uploads\/attachment_data\/file\/1066166\/O-S_Stablecoins_consultation_response.pdf\">voiced<\/a> by the Treasury weren\u2019t limited solely to stablecoins; the financial regulator also teased the launch of a Cryptoasset Engagement Group, which will consult with the industry stakeholders; reassessing the country\u2019s tax system in regard to crypto, establishing a \u201cfinancial market infrastructure sandbox\u201d and even the Royal Mint\u2019s very own NFT.\u00a0<\/p>\n<p>Even the infamous market crash on the second week of May, particularly painful to the stablecoins\u2019 original promise of zero volatility, didn\u2019t discourage the Treasury. According to the Independent, legislation to make stablecoins a means of payment would be included in the Financial Services and Markets Bill. <\/p>\n<p>What is known now is that the Treasury doesn\u2019t plan to include algorithmic stablecoins, such as UST, in this legislation \u2014 only fully-backed stablecoins like Tether (USDT) or USD Coin (USDC) are being considered. <\/p>\n<p><strong><em>Recent:\u00a0Genomics company explores NFTs in hopes of advancing precision medicine<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Seize_and_recover\"><\/span>Seize and recover<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The aforementioned Financial Services and Markets Bill, which would possibly include the guidelines for stablecoins, occurred as a part of the Queen\u2019s Speech \u2014 a package of 38 legislative projects that was announced to the Parliament on May 10.\u00a0<\/p>\n<p>In its current form, it doesn\u2019t tell much, though the very language sounds rather benevolent for the industry. The bill aims at \u201charnessing the opportunities of innovative technologies in financial services,\u201d including:<\/p>\n<blockquote><p>\u201cSupporting the safe adoption of cryptocurrencies and resilient outsourcing to technology providers.\u201d<\/p><\/blockquote>\n<p>For now, the key point of the bill\u2019s announcement is the intention to craft a national framework which wouldn\u2019t copy the EU\u2019s. While it would initially <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ly to the traditional finance sector, similar requirements for crypto assets are expected.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/e55e16dd-ec25-430b-8f9e-763be14aabd3.jpeg\"><figcaption style=\"text-align: center;\"><em>The Eastern end of Government Offices Great George St, where Her Majesty&#8217;s Treasury is located. Source: Carlos Delgado<\/em><\/figcaption><\/figure>\n<p>Another part of the Queen\u2019s Speech that bodes significant for the crypto industry is the Economic Crime and Corporate Transparency Bill. At first sight, it doesn\u2019t sound that amicable to the digital currencies, referring to them in a list of the risk zones where British enforcers are going to tighten their grip. As the only line mentioning crypto goes, the bill would create powers to:<\/p>\n<blockquote><p>\u201cMore quickly and easily seize and recover crypto assets, which are the principal medium used for ransomware.\u201d<\/p><\/blockquote>\n<p>While the \u201cprinciple medium for ransomware\u201d is not exactly benevolent wording, the existence of a body that could not only seize, but also actually recover the funds in crypto would bolster the market.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%9CA_huge_step_for_the_UK%E2%80%9D\"><\/span>\u201cA huge step for the UK\u201d<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> perception in the U.K. crypto community is a positive one, Djahal said. There is still a commonly held belief that crypto is a criminals\u2019 paradise hence the regulation is welcome, he believes:<\/p>\n<blockquote><p>\u201cIt\u2019s not that existing powers cannot seize the ransomware money, but Anti-Money Laundering legislation enacted in 2002 way before crypto was incepted, is perhaps just not fit for purpose in the cryptoverse.\u201d<\/p><\/blockquote>\n<p>Benjamin Whitby, head of regulatory affairs at Qredo, tends to agree on that matter. He told Cointelegraph:<\/p>\n<p>\u201cI feel the recognition of the space in this proposal is hugely positive, recognizing the asset class will unlock the opportunity for more fintech firms to start working crypto assets into their technology stack.\u201d<\/p>\n<p>While the ambition to develop effective enforcement still might be perceived as somewhat ambivalent at this point, experts are excited about the announced stablecoin recognition. Whitby called it \u201ca huge step for the U.K.,\u201d but said we shouldn\u2019t kid ourselves that \u201ceverything will be smooth sailing:\u201d<\/p>\n<blockquote><p>\u201cIt\u2019s vital people that have a position they can move to for safety, with regulated stablecoins we can move into a T0 settlement world and reduce the burden on the creaking and fragile traditional infrastructures.\u201d<\/p><\/blockquote>\n<p>Dhanjal believes that the British financial authorities might even seek their own stablecoin, which would pretty much resemble a central bank digital currency (CBDC) \u2014 a government-backed \u201cBritcoin\u201d that will be pegged to the Great British pound. The intent here is to maintain financial stability and address the volatility inherent in crypto, he states:<\/p>\n<blockquote><p>\u201cWith appropriate regulation, a Britcoin could provide a more efficient means of payment and widen consumer choice, particularly in the emerging decentralized financial system.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Make_Britain_great_again\"><\/span>Make Britain great again?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It is hard not to compare the U.K. with its continental neighbor now that they are separate and have to compete with each other for talent and innovation. The very spirit of the Queen\u2019s Speech draws on that comparison, stating its mission to \u201cmake the most of our Brexit freedoms\u201d or \u201cseize the benefits of Brexit\u201d \u2014 overall, the word \u201cBrexit\u201d is <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/assets.publishing.service.gov.uk\/government\/uploads\/system\/uploads\/attachment_data\/file\/1074113\/Lobby_Pack_10_May_2022.pdf\">mentioned<\/a> 20 times. The U.K. could and would innovate and adopt faster than many jurisdictions, Whitby believes, and the move away from the EU regulatory process allows it to act faster:<\/p>\n<blockquote><p>\u201cCrypto assets unlock faster settlement, remove credit risk and drop settlement times to near zero, it\u2019s a huge win for commerce and the U.K. has set the intent it will take the front foot. The U.K. has a long history of exploring boundaries, crossing oceans in tiny ships, insuring risk and forming new ventures \u2014 crypto is no different.\u201d\u00a0<\/p><\/blockquote>\n<p>Dhanjal is confident that the U.K. has a high chance of out-competing its continental neighbors, as it possesses a centuries-old heritage in financial services, a deep talent pool and experience from all over the world across the financial sector and startups. In his opinion, the U.K. is unwilling to adopt the general spirit of EU regulations, and that is good news for the country.<\/p>\n<p>\u201cNow that the shackles of the EU have been removed through Brexit, the U.K. can accelerate through the gears in becoming a world leader in crypto innovation and adoption,\u201d he said.<\/p>\n<p><strong><em>Recent:\u00a0Crypto inheritance: Are HODLers doomed to rely on centralized options?<\/em><\/strong><\/p>\n<p>Gilbert Hill, the chief strategy officer at blockchain-based data aggregation platform Pool, told Cointelegraph that U.K. authorities are genuine in their efforts to create a haven for starting and scaling crypto companies, but, in his estimate, not all of them are efficient. <\/p>\n<p>In particular, he finds the current regulatory sandbox inflexible and said that it has rejected two-thirds of applicants, which has already resulted in a drain of some of the best projects to the European mainland. Hill also emphasized the strong sides of the European approach:<\/p>\n<blockquote><p>\u201cIn a nutshell, the EU is putting data reform at the heart of its strategy with the aim of busting silos worth 300 billion euro a year, and a set of new laws covering everything from AI through to internet gatekeepers and data unions, all a new source of high-quality intel to build better Web3 products.\u201d<\/p><\/blockquote>\n<p>To become a future leader, Hill stated, the U.K. needs the same degree of political will \u201cshown on the mainland\u201d and to break free from the inflexible FCA\/sandbox model. Hopefully, the spirit of competition and the urge to justify its separation from the continent will help the nation to make the right decisions.\u00a0<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/enforcement-and-adoption-what-do-uk-s-recent-regulatory-aims-for-crypto-mean\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Enforcement and adoption: What do UK\u2019s recent regulatory aims for crypto mean? &#8220; In April, the United Kingdom\u2019s Economic and Finance Ministry, also known as Her Majesty\u2019s Treasury, announced its intention to put the United Kingdom at the forefront of technology by bringing stablecoins under the country\u2019s payments regulation \u2014 a bold move that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":452074,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvOGJlOWU1Y2MtMTQyMS00NDI1LWE5NDMtNGIyNDM2OWQxMTQ5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,75493,74892,74355,71511,55229,70934,4966],"class_list":["post-452073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-stablecoin","tag-tokens","tag-adoption","tag-government","tag-law","tag-regulation","tag-united-kingdom"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/452073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=452073"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/452073\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/452074"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=452073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=452073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=452073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}