UK Lawmakers to Set New Crypto Regulations Post-Brexit

Countries like the United Kingdom (UK) are among the world’s leaders in the cryptocurrency sector, which is expanding at an unprecedented rate.

In a recent interview with CNBC, Andrew Griffith, a UK MP (Member of Parliament) and economic secretary to the Treasury and financial services minister, said Britain intends to introduce specific laws and regulations aimed at regulating the cryptocurrency industry in the next 12 months.

New Crypto regulation is on its way in the UK

Meanwhile, the UK government will make use of Brexit to make a different regulatory program for crypto which may likely come into law in the next 12 months. Specifically, the new law will include guidelines for regulating digital asset service providers, lending transactions, and how digital assets are stored. The rule will aim to drive the sector forward and turn Britain into a digital asset hub.

Additionally, the lawmakers plan to bring the crypto industry up to the traditional financial system standard where the risk of volatility is at its lowest due to regulations set in place. In addition, the British parastatal is also optimistic that the robust regulatory framework will enable a new and exciting sector to flourish and grow, boosting jobs and investment, while maintaining a transparent and fair standard.

However, this announcement is coming two months after the UK Treasury made public a consultation paper outlining its plan for regulating crypto trading platforms and exchanges. The consultation paper is open to the public until April 30th, as the move shows the Treasury’s openness to the technological advancement ongoing in the blockchain industry and at the same time, ensures customer protection.

UK Calls for Stricter Crypto Laws

UK parliament members have been in full support of a standard regulatory framework for crypto in the form of the Financial Services and Markets Bill (FSMB) even before cryptocurrency exchange FTX crashed and its founder Sam Bankman-Fried resigned as Chief Executive Officer (CEO). One of the features of the FSMB is to categorize crypto as a regulated financial instrument.

As reported by TheCoinRise, Ashley Alder, the incoming chief of the Financial Conduct Authority in the UK has called for stricter crypto laws. In his words “Crypto ought to be regulated further”.

Crypto Regulators Tighten Rules on Crypto Schemes

Aside from regulations, the regulators in the country are also concerned about crypto schemes and investment. 

The authorities in the country have discovered an initiative that will help to stop influencers from promoting illegal financial and investment schemes. Hence, the FCA and the Advertising Standards Authority in collaboration with Sharon Gaffka have started enlightening fin-influencers on the risk and consequences of promoting schemes dubbed “get rich quick”.