- UK Finance Ministry shuts down gathering of views on cryptocurrency regulations
- Some major counterparties including a16z, Binance and Circle responded
- Government warns against repeating US mistakes and calls for “broader thinking”
Late last month, April 30, Finance Ministry officially closed the gathering of views on what should be the regulatory framework for the cryptocurrency segment.
Major “players” generally supported the agency’s position, but also urged it to “think outside the box.”
The consultation document was published in early February. Many major counterparties responded, including a16z, Binance and Circle.
Andreessen Horowitz warned Britain against repeating the U.S. mistake.
Binance stressed the risks of “disproportionate” regulation, Circle called for making the licensing mechanism for service providers as “simple and transparent” as possible.
“This is a welcome step toward regulatory clarity..
If applied thoughtfully, this framework will only accelerate socially beneficial innovation while reducing both criminal and financial risks”
– Riccardo Tordera Ricci of The Payments Association.
The U.K. Treasury originally planned to “fit” cryptocurrencies into the current regulatory framework. These include:
- licensing regime for VASPs;
- the primacy of the “Financial Services Markets Act”;
- assigning stabelcoins to money in the regulatory field;
- using the “same risk, same regulation” principle.
and in general crypto lobbyists in Britain approve this approach. But they also urge the Finance Ministry to “think bigger,” to use the example of the EU, so that the UK is not left “in isolation.”
There is a set of MiCA rules in question.. And even in the EU itself there are cautious calls to “push” other countries to use this regulatory framework.
Well, the result of this consultation will be visible in a year.. If all goes according to plan, the Ministry of Finance will present a draft regulatory framework by early 2024.