For a while now, the UK government has been pondering over adopting cryptocurrency legislation. The government is trying to safeguard consumers due to the rising popularity of digital currencies and the possible hazards involved with them.
According to a senior British minister, Andrew Griffith, the UK government might establish cryptocurrency rules within a year. Griffith said that the UK wants to profit from the advantages that blockchain technology may offer to the economy and private sector.
In addition, the senior minister stated on the 17th of April that the long-term goal is to provide businesses with the means to take full advantage of the potential presented by crypto assets while guaranteeing solid regulation. He emphasised that the UK government is in a good position to regulate the cryptocurrency ecosystem fairly.
Regulations may increase customer trust in the marketplace, which may encourage adoption. It might also aid in preventing the use of digital currency for illegal uses in addition to safeguarding consumers.
Reflecting on the upcoming framework, Griffith said that the regulatory framework for cryptocurrencies would combine already-existing laws governing financial assets with brand-new crypto-specific regulations. He said, “Wherever possible, we want to see the same asset regulated in the same way, but there are some additional opportunities in the crypto asset or distributed ledger space, and we want to take advantage of that.”
He disclosed that stablecoin legislation is part of the financial services law and will happen quicker than the additional broad framework for digital currencies. When asked about the establishment of a central bank digital currency (CBDC), he answered, “If you’re going to have a sovereign digital currency, you’ve got to have the highest level of resilience and infrastructure, so that’s not going to happen overnight.”
Despite not having any cryptocurrency guidelines in place presently, it is evident that the UK government is taking the matter seriously. It is visible that the UK is much more open to considering crypto, unlike the US who are casting their doubts over it. Following their exit from the European Union (EU), the UK is finally fixing its own regulations to protect their customers and to attract more investment to the country.