The crypto community in the United Kingdom (UK) is now expecting a better crypto regulation approach by the UK authorities.
The UK is a very big hub for the crypto sector. The financial conduct authority (FCA) is the dominant financial regulator in the UK & also this govt body regulates the crypto sector with semi-traditional rules. Over the several years, several crypto companies alleged that FCA keeps new crypto companies away from the UK’s jurisdiction and the existing crypto companies are creating a monopoly in the UK jurisdiction.
As we know that in May of this year, the UK Treasury Committee proposed the idea to regulate the crypto sector as a gambling asset and impose rules, which are in existence against the gambling business activities. At the time, the majority of government officials supported the idea.
On 20 July 2023, The United Kingdom’s economic and finance ministry dismissed this idea and stated that it will not be suitable to regulate crypto under the gambling rules.
Britain’s Financial Services Minister Andrew Griffith said that if the UK will consider Cryptocurrencies as a gambling asset then it will be opposite to what other countries considered cryptocurrencies.
Furthermore, the minister dragged attention toward the G20 summit in which the government agencies from 20 countries agreed to bring an international crypto regulatory framework, to keep all kinds of crypto illicit financial activities away from this innovative sector.
According to Griffith, if the country will forcely regulate cryptocurrencies as a gambling asset then it will not be enough to protect the citizens from several types of risks e.g. funds commingling, market manipulation, FTX bankruptcy-like incidents, etc.
“A financial services regulatory framework is more appropriate for addressing the risks of unbacked crypto assets and creating the conditions for safe innovation,” the UK minister said.
The UK government confirmed that there are already some crypto-dedicated bills, which aim to regulate the crypto sector under the perfect rules and expectedly may come into effect by the end of this year.