Meanwhile, the United Kingdom is laying the groundwork for a far-reaching crypto regulatory regime, positioning themselves to reclaim the initiative and emerge as a leader in digital finance. UK officials are developing a detailed framework that will subject crypto firms to the same stringent standards as traditional financial institutions. The draft legislation adds six new regulated activities. It sets out in more detail which services it’s overseeing and the remit of the Financial Conduct Authority.
Currently, UK proposed framework consists of reclassifying UK-issued stablecoins as securities instead of e-money. This reclassification will subject them to some of the same disclosure standards that we’re used to seeing in capital markets.
This is the UK’s regulatory regime for cryptoassets, encapsulated in a draft statutory instrument (SI) and accompanying policy note. This comes on the heels of the UK government’s publication of a consultation on the UK regulatory regime for cryptoassets in 2022. The Financial Conduct Authority will be responsible for regulating these new activities.
According to Circle’s Dante Disparte, this decision is a milestone in “Fostering responsible innovation.
Bitget’s COO, Vugar Usi Zade, stated that the move "finally gives crypto businesses the transparency they need to plan product rollouts and commit to the UK market."
The UK regulator has recently announced plans to ban crypto payments through credit cards.
"UK aims to dominate digital finance with bold crypto regulation blueprint." - Alexander Stefanov
In the US, the Senate prepares for a vote sometime next month on a stablecoin bill. This legislative decision is on the cusp of a changing conversation in the industry.
