In essence, Cryptocurrency isn’t really considered to be a legal tender model in the UK. But, the government of the nation is moving gradually to accept the same. As per CNBC, the UK administration has announced a plan to mint their own NFT recently in April, 2022.
Even though the specifics are yet to be stated, it’s only a matter of time before the UK becomes a global leader in the Crypto market. Hence, it’s always better to know about the regulations and rules that are already in place. So, let’s keep reading.
The Current Stature UK’s Regulatory Scrutiny
The United Kingdom doesn’t consider Crypto as a form of commodity or currency at all. So, it’s been using and regulating the industry in more of a “stock exchange” -like manner.
However, since 2020, when Bitcoin’s price began increasing, the government has become a little more concerned about the system. And to take care of the same, it also made FCA the first regulator of this industry. Here’s what the stature of Crypto’s regulatory scrutiny looks like –
- If you want to create a Crypto-based firm or company in the UK, registering with the FCA will be a must for you.
- Critically, your company will have to comply with CFT/AML reporting and consumer protection obligations as well.
- If your organization has been involved in some sort of money laundering or terrorist financing, you’ll be punished by the FCA.
The possibilities of using stablecoins have been explored by the UK government as well. But, as of yet, it hasn’t been implemented in the market.
How Does The Future Look?
Unlike the USA, the United Kingdom was a little cautious about the usage of Cryptocurrency at the beginning. But, since it exploded in the mainstream market, the government wanted to be an “example” and “lead the way” in Europe.
The city minister, John Glen, has already offered his acceptance in this regard. According to him, the process of “bringing digital assets” to the country will be under heavy scrutiny. And he also plans to do the following –
- As of now, the segment of Cryptocurrency will follow the same rules and regulations placed for electronic payments. He wishes to bring Stablecoins under this proposition as well. More information regarding the same will follow suit later on.
- He wants to let the Law Commission give the blockchain-based community a new name – DAO, or decentralised autonomous organisation.
- There will be a Cryptoasset Engagement Group available in the country, which will be looking over the Crypto-based transactions as a whole. The host members, as well as ministers from Crypto businesses and UK regulators, will take care of this system.
- The United Kingdom government will consult a “world-leading regime) to regulate trade in Bitcoin and other Cryptocurrencies.
- Finally, he’ll want to explore the widespread application of blockchain technology to issue debt instruments properly.
Besides, in case Cryptocurrency becomes a thing in the UK, the usage of various platforms like bitcoin up might also begin accordingly.
FAQs – Frequently Asked Questions
In this section, we’ll explore our titular topic a little more than we did before. And, to make it easier for you, we’ll be keeping it in a question-answer format. Let’s keep reading, then.
Is Cryptocurrency Legal In The UK?
Yes, Cryptocurrency is, indeed, legal in the United Kingdom. Nonetheless, it’s yet to be used as a form of currency in the market.
What’s The Future Of Crypto In The UK?
The UK is currently planning to mint its own NFT to be a leader in the Crypto market. But, it is still yet to be confirmed how or when they’ll start working.
Wrapping It All Up!
From what we’re seeing, the beginning of Crypto rise in the UK isn’t too far off. All it needs to do is start off the bat in the proper manner –
- By watching over the whole Crypto network.
- Building a comprehensive security system.
- Creating a better marketing persona for the system.
So, that’ll be all for this article.
Hopefully, we could help you in the best possible manner. However, if we still missed out on something, don’t hesitate to let us know all about it. Have a great day ahead!
