U.K. to Regulate The Cryptocurrency Space Within The Next 12 Months
As reported by CNBC, the U.K. is set to establish a comprehensive framework for cryptocurrency regulation within the next year.
Economic Secretary of the U.K. Treasury, Andrew Griffith, confirmed this plan on Monday. The U.K. hopes to position itself as a leading global hub for crypto assets and released proposals for regulating cryptocurrencies in February.
The government’s consultation period on these proposals will run until the end of April. Griffith noted that the U.K. now has full control over its own legislation following its departure from the European Union.
This means that the government can decide on crypto regulation independently, without coordinating with other countries. Griffith stressed the importance of the U.K. capitalizing on this opportunity and emphasized the need to approach regulation flexibly and proportionately.
In contrast to recent actions taken by U.S. regulators, the U.K. aims to attract cryptocurrency companies to establish their businesses in the country.
The U.S. Securities and Exchange Commission (SEC) has utilized existing securities laws to regulate many altcoins and has filed lawsuits against exchanges for offering investments in them. In contrast, Griffith stated that the U.K. plans to incorporate current laws with some new ones to regulate cryptocurrencies.
Parliament is already considering the Financial Services and Markets Bill as an example of legislation that is partly oriented toward the nascent blockchain and cryptocurrency industry.