• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Bitneni

  • News
  • Bitcoin
  • Ethereum
  • XRP (Ripple)

Crypto Laws in the UK Set for Reconstruction to Embrace Fintech Regulatory Strategies

Ronald Henderson/April 21, 2022News

FacebookTwitterReddit
cryptocurrency regulations in UK

While UK laws guiding fintech record successes, laws put in place to regulate crypto are rapidly going south. The Precautions put in place by Britain to regulate crypto in the UK appears to have caused more harm than good for the industry.

Crypto’s bad actor characteristics forced British authorities to put serious warning measures in place. The warnings were supposed to protect users investing in crypto while keeping tabs on the different crypto companies. However, the reverse has been the case in the crypto industry as it has been misinterpreted generally to mean that the UK is not accommodating to crypto.

Countries Continue to Flee Amid Rigid Regulations

The rigid laws have caused companies to move their market to more accommodating countries. The UK records just 34 firms registered under the laws enacted by the FCA. The other companies that failed to meet registration standards have sought sanctuary elsewhere. Top companies would rather have most of their business outside the borders of the UK where they believe they can thrive; a far cry from the UK’s goal of promoting crypto.

The consumer awareness spearheaded by the Bank of England in collaboration with the Financial Conduct Authority appears justifiable. As of 2020, there was minimal research done to thoroughly assess crypto’s makeup and its full potential in the financial market. This is coupled with the fact that the prices of tokens witnessed a dramatic hike in the market.

In a bid to protect investors and eliminate huge risks, the FCA asked that all crypto companies be registered while adhering to the direct anti-money laundering laws. The fall in the UK crypto market is evident in Pitchbook’s data analysis. Here, there is a decline in VC by 70% in the first quarter of 2022 as opposed to a rise in global deals.

As a counteraction to amending the laws, the treasury has proposed to put in place clearer and better-accommodating policies that would minimize the blow. The treasury understands that accepting and facilitating digital assets is highly essential for its finances. Hence;

  • Crypto firms will be allowed to accumulate funds from consumers but they must be secured by banks that are fully licensed
  • An independent governing body is to supervise crypto assets
  • The FCA is to draft a new set of rules for digital tokens (also known as stable coins) that are not linked to the value of fiat currency
  • All digital tokens associated with fiat currency would be encompassed under former e-money laws
  • The Royal Mint will issue NFT (non-fungible token)

Fintech experts expressed the fear that soon if crypto firms remain overseas in countries like the USA and Switzerland, regulating them in the UK would be less feasible. There have been popular opinions by crypto firm owners that fintech and the crypto industry are interrelated. Hence, it would be wise to borrow fintech’s regulating system to effectively monitor the crypto industry.

What is Next?

Rather than combat crypto, the new directive to be adopted by UK crypto regulators is a deliberate effort to make laws that can be obeyed. This will ultimately improve the UK financial market once these crypto companies return to their root.

Tags:UK

FacebookTwitterReddit
Henderson

Ronald Henderson

Ronald has worked in the computer industry for 5 years when he decided to stand on his own and start his own firm, and he's never looked back. A real hard-worker and go-getter, he is a powerful leader and has made quite a name for himself in the industry. Born and raised in Pennsylvania, he still resides there with his wife and two kids, Mark and Gene. He believes that simplicity is the key to everything in life, including writing, and loves to make his content engaging and easy to understand for all audiences - even those who aren’t necessarily from a technical background.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Crypto Miners Turning To Waste Natural Gas For Energy Needs

ETH

Ethereum Community is in Disarray as a Result of a Contentious Proposal to Make Ethereum transactions Reversible 

United State Regulator Talks About Bitcoin’s Future as a Replacement for Fiat

Footer

Every Bit of Internet!

  • About Us
  • Contact Us
  • Privacy Policy
  • Disclaimer
  • Terms and Conditions

Copyright © 2025

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT