British Lawmaker Predicts Incoming Crypto Regulation From the Government
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Andrew Griffin, a top British minister, asserts that crypto legislation could be enacted in the United Kingdom within a year, which will help to reduce risks and foster innovation in the industry.
He emphasized that the United Kingdom is working hard to establish itself as a cryptocurrency center by encouraging innovation and ensuring progressive regulation.
Possible UK Crypto Regulations
In a recent interview, Andrew Griffith, the UK Treasury’s economic secretary, stated that the long-term goal is to allow firms to capitalize on the opportunities presented by crypto assets through good crypto regulation.
The UK government has been considering cryptocurrency legislation to protect consumers due to digital currencies’ growing popularity and potential risks.
Griffith emphasized that the UK government is well-positioned to regulate the cryptocurrency ecosystem fairly. Aside from that, the United Kingdom’s decision to exit the European Union allows it to examine cryptocurrency regulation independently of the rest of Europe.
The senior minister said the UK is now adopting a growth mindset and aims to maximize economic initiatives driven by private-sector tech innovation.
Griffith said the cryptocurrency regulatory framework would combine existing financial asset legislation with brand-new crypto-specific regulations.
He stated that the government wishes to regulate all assets in the same manner whenever possible. However, they will want to take advantage of some additional crypto assets or distributed ledger space with additional benefits.
Other Crypto-Driven Plans Are in Motion
Griffith claims that the United Kingdom has always been a center for progressive regulation. As a result, firms and individuals in the crypto space will have a great opportunity to take advantage of these regulations.
He cited the inclusion of fiat-backed cryptocurrency settlement in the financial services bill as an example, noting that it could come before general regulation.
He also discussed the potential launch of the proposed digital pound in the United Kingdom. However, Griffith stated that this would take much longer due to policy and technology issues and would not be seen within the next year.
According to Griffith, a sovereign digital currency requires the best infrastructure and level of resilience, which is unlikely to happen anytime soon. Furthermore, he anticipates that the concept’s major issues will be debated over the next year.
He stated that the UK economy would benefit greatly if these innovations, including artificial intelligence, could be harnessed.
Brian Armstrong, the CEO of the crypto exchange Coinbase, expressed his delight in the direction the UK is moving towards crypto regulation in a tweet.
Great meeting today with UK Economic Secretary and City Minister @griffitha.
The UK is moving fast on sensible crypto regulation to both drive economic growth AND consumer protection. Excited to keep investing in the UK. 🇬🇧 pic.twitter.com/478PQSLmDe
— Brian Armstrong (@brian_armstrong) April 17, 2023
He also met Griffith earlier this week in London for a speech about how the UK can accelerate its crypto industry and eventually become an innovation hub for the Web3 economy.
The Importance Of Crypto Regulation for the UK
The UK government is considering adopting restrictions on cryptocurrencies for several reasons. The main reason is to prevent fraud, as the incidence of fraud and scams has increased with the use of digital currency.
Another justification is consumer protection, as they need to be protected from losing their investments because digital currencies can be volatile and unpredictable.
Regulations could also help stop the use of digital currencies for criminal purposes and protect consumers. Because cryptocurrency has been linked to money laundering and other illegal activity, this could help prevent it.
Britain’s ambitions to become a crypto powerhouse align with Prime Minister Rishi Sunak’s, who stated as finance minister last year that he supported the idea.
Some regions, including Dubai, Singapore, and, most recently, Hong Kong, are already attempting to establish themselves as crypto hubs.
On the other hand, since Gary Gensler took over as chair of the Securities and Exchange Commission in April 2021, the United States has significantly increased crypto-related enforcement action.
