Overview
- HM Treasury’s analysis states that the United Kingdom should not be conservative and be as ambitious as the European Unions’ recently developed crypto rules, known as MiCA.
- The review also said that a £1 billion fund should be created for the growth of fintech to help the local startups in flourishing growth of their user base.
A review of the fintech sector of the UK was ordered by the HM Treasury, which has concluded that the UK needs to build new regulations for the crypto assets.
The regulators in the UK recently launched some new regulations which had put a ban on the purchase and sale of crypto derivatives and also a vain attempt at introducing an anti-money laundering scheme. The regulations on the crypto ban have made people think that new local crypto and fin-tech startups might move to somewhere with comparatively lenient regulations.
The gist of the proposal
Rishi Sunak announced this review on his maiden budget, which was in March 2020, and the proposal was sharpened by Ron Kalifa, the former Worldpay boss. This proposal stated that other institutions and markets have started to get ahead of us and have started to build crypto-friendly regulations like the European Union’s Markets in Crypto-Assets regulations and the United Kingdom need to get ahead of the situation and devise a solid plan to tackle it if it wants to stay as the hub of digital assets.
Also read:A consultation paper was published by the HM Treasury in January, and it asked for evidence on the UK’s regulations on stablecoin and crypto. The review advised the United Kingdom to take part in the functional group of national regulators, known as the Global Financial Innovation Network.
They should also be leading the way on the regulations and the policies related to crypto. The review also added that the UK should also keep a close eye on the happenings around the world regarding digital assets and crypto, so they do not get left behind in the race of technology and innovation.
The news of the review asking to create a £1 billion fund for the growth of the crypto sector was already in the headlines when it got leaked in January. These regulation changes should be made to save UK from losing potential IPOs related to fintech to other countries like the US.
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