UK Sets Out Plans For Crypto Regulation

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UK Sets Out Plans For Crypto Regulation

The UK has released draft rules for crypto asset regulation – a step in the right direction for the UK.

Firstly, the UK plans to crack down on centralised crypto lending and provide clarity for this with a “world-leading” framework. This will aim to brings standards for crypto lenders closer to that of traditional finance. This is particularly significant because crypto lending has been the root cause for many crypto giants going bust last year. In addition, the EU and the US have not yet covered crypto lending, hence it could result in the UK being a step ahead of two major jurisdictions.

Even though we finally have a roadmap in the UK to regulate the crypto space, it will be some time before the rules become implemented. Nonetheless, having a regulatory direction can provide crypto companies with confidence that the UK is on the right path toward embracing the industry. The plan can also allow institutional investors to have more conviction with allocating capital to the crypto asset class in the UK.

Marcus Sotiriou is a Market Analyst at GlobalBlock, a publicly listed digital asset trading platform.

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