A visual representation of the digital Bitcoin Cryptocurrency was shown on December 23, 2017 in Paris, France.
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LONDON – Britain is coming together fresh pitch to become a global crypto sitebut it faces a tough road amid competition from local activists and the US under President-elect Donald Trump.
The British Labor Government is committed to making the country an enabling environment for companies involved in crypto and blockchain-related activities.
In a recent speech, UK Treasury Economic Secretary Tulip Siddiq said the government wants companies to participate in draft legal provisions for digital assets, including stablecoins – tokens linked to the value of sovereign currencies – “as early as possible next year”.
He also said the government would not approach crypto-participation services, which offer rewards on users’ token holdings, as collective investment schemes. Crypto-industry insiders were concerned that such treatment would create burdensome regulatory requirements.
“This is a sector with enormous potential and one that is already playing a leading role in the UK’s vibrant tech scene,” UK investment minister Poppy Gustafsson said at an event hosted by the UK division last week. CoinbaseStand With Crypto sponsored advocacy group.
Gustafsson said the government is “committed to promoting and embracing blockchain” and is “already taking decisive steps to support this sector and ensure we remain at the forefront of this global innovation.”
One example he mentioned was launching Digital Securities Sandboxa testbed for the development of new technology-based solutions based on distributed securities issuance, trading and settlement in a directly regulated environment.
Another example is “digital gilding“A pilot launched last month that seeks to issue UK government bonds on the blockchain.
Could the UK become a crypto hub?
While Britain is moving forward with several proposed regulations on cryptography, not everyone is convinced that it can be a significant place for the technology on a global scale.
“I don’t know if we have the politicians, the government, the risk appetite, the pro-entrepreneurship attitude to really take advantage of this generational opportunity,” said Steven Bartlett, a British entrepreneur famous for his “Diary of a CEO” podcast series. , he said during a discussion about the fire at the Stand with Crypto event.
Bartlett said that spending time in the San Francisco and London offices of his blockchain startup Thirdweb “is really unfair trying to build a company here compared to being there.”
Data from the UK’s Financial Conduct Authority suggests that demand for crypto products is growing in the country – the average value of crypto held by Britons rose to £1,842 ($2.33).7) this year from £1,595 a year ago, a survey released by the regulator last month
FCA too published the roadmap outlines a plan to implement regulation for the crypto industry. Watchdog will release discussion papers on stablecoins, trading platforms, lenders and equity over the next two years, The entire regulation that will be in force by 2026.
American competition
Tom Duff Gordon, Coinbase’s vice president of international policy, told CNBC that the UK should not let the regulatory push for crypto slow down following Trump’s election victory.
The Republican politician made a popular platform for cryptopolitics by swearing would not sell bitcoins seized by the federal government and that he would replace Gary Gensler, chairman of the Securities and Exchange Commission, who took an aggressive enforcement approach against various crypto companies while heading the agency.
Last month, Gensler announced He plans to step down as SEC chairman on January 20, Trump’s inauguration date.
“The UK has done a lot of work,” Coinbase’s Gordon told CNBC in an interview on the sidelines of the event. “There is a huge chance that the UK will be really successful in this area, but we need to have regulatory clarity.”
“We would like to see secondary legislation around sharing and stablecoins,” Gordon added. “The city minister mentioned that, so we hope to see that as well.”
Although Britain now has a regulatory roadmap, crypto industry executives fear that waiting until 2026 to launch a full regime could push the country behind its transatlantic peers.
Faryar Shirzad, Coinbase’s chief policy officer, told CNBC in a recent interview that he sees the U.S. Federal crypto legislation on track to pass “fairly quickly”. – Possibly as soon as 2025.
Meanwhile, in the EU, comprehensive legislation known as the Markets in Crypto-Assets (MiCA) regulation will come into full effect this month.
Outdated regulations that block growth
George McDonaugh, CEO KR1an investment firm specializing in publicly traded digital asset blockchain technology, said outdated UK rules are making it difficult for crypto-focused investment firms like his to become more publicly traded names.
Today, KR1 is listed on the Acquis Stock Exchange, a trading center for high-growth companies.
McDonaugh said KR1 has been trying to trade on the main market of the London Stock Exchange for years, but has been blocked. 2018 rule excluding tokens like bitcoin and to the ether not allowed in vehicles on the public list.
“Time has moved on,” McDonaugh said. “We believe we can unlock a tsunami of capital into British markets by removing this restriction.”
As the FCA tries to figure out how to develop and implement a regulatory crypto framework, experts hope it will encourage and encourage innovation, not stifle it.
Irfan Baluch, a crypto lawyer at Cripps, said he hopes the UK will take inspiration from the EU, which has already taken a “leading stance” on crypto regulation with MiCA.
“Applying 20th 21st century laws to 21st century technology… it will only stifle innovation and push crypto businesses overboard,” Baluch said, adding that the FCA’s roadmap for crypto regulation is “a nod in the direction of tackling this problem,” at least for now.
“The UK has this incredible opportunity at the moment to play a really decisive role…in the direction of innovation,” Bartlett said.
“If we do this the way the United States naturally does, we will not be the residual beneficiaries of blockchain or AI technology; we can actually play a significant role in making sure that the value of these technologies increases. To this country, but it has to be radical,” he added.
