UK crypto, and crypto regulation around the world
Around the world, crypto regulation is the topic of much-heated discussions at the moment. On one hand, you have a jurisdiction like Hong Kong running ahead to become a global crypto hub. On the other hand, you have the US, the renowned heart of global finance and yet reluctant to properly classify or regulate blockchain-based digital assets. Amid the worldwide race of regulating crypto, where do we in the UK crypto currency space stand anyway? How is cryptocurrency regulation UK faring?
Well, the answer to is crypto trading legal in UK? is a yes. They are in fact way ahead of most other countries in terms of regulating digital currency! However, if you want to know the nuances of how exactly the cryptocurrency regulation UK works, you have to dive deeper.
Is Crypto Trading Legal in UK: The Basics
Source| Cryptocurrency regulation UK
As mentioned before, the answer to the big question of is crypto trading legal in UK is a resounding yes!
We certainly have a lot to brag about when it comes to the proactive approach in the regulation of UK crypto currency. The amended Financial Services and Markets Bill now provides regulatory support to digital assets for user safety on UK crypto exchanges.
Further, there’s the UK Travel Rule and more being implemented to ensure the best UK crypto exchanges are completely safe to the users. To understand the UK government crypto stances and outlook better, let’s take a look at these up and coming UK crypto regulation 2023:
UK Crypto Regulation 2023: UK Crypto Currency Law Acknowledges Crypto Trading as a Lawful Financial Affair
The Financial Services and Markets Act 2023, a reform bill, has received loyal approval as of June 29, 2023. What does the law say about UK crypto?
- Cryptocurrency trading is now regulated financial activity in the UK.
- UK crypto currency is defined as “cryptographically secured digital representation of value or contractual rights”.
- The objective of the amended Financial Services and Markets Act is to regulate UK crypto and ensure safe adoption for all involved users, among other things.
- The UK Treasury views the new law as something that provides a proper backbone to both UK businesses and users, and drives overall growth for the economy.
Notably, the UK government underscores the importance of the amended Financial Services and Markets Act 2023 for the nation’s economy as a “rocket boost.”
UK Crypto Regulation 2023: UK Travel Rule
As the next step for UK government crypto stances, the crypto UK Travel Rule came into effect on September 1, 2023, and the purpose of this one is to stop money laundering and terrorist financing that could be carried out through crypto if left unregulated.
These rules particularly target UK crypto providers, and they were introduced by the UK Financial Conduct Authority on August 17. What does the UK Travel Rule mandate?
- VASPs or virtual asset service providers in UK crypto must collect, verify, and share information regarding crypto transfers. This includes UK crypto exchanges.
- UK crypto exchanges and other relevant entities can now withhold certain crypto transfers should they find it suspicious, in compliance with the UK Travel Rule.
- If a user receives a payment from overseas through a VASP and the sender does not abide by the Travel Rule, the relevant VASP must make a risk-based assessment to judge if the transfer should be made available to the recipient.
- The same rule would apply to outbound crypto transfers.
Notably, the UK Travel Rule is actually our national implementation of the original Travel Rule created by the UN Financial Action Task Force in June 2019. Till date, the UK stands to be one of the very few countries under the FATF’s jurisdiction to actually have implemented it.
UK Crypto Regulation 2023: UK Crypto is Now Part of Financial Services Reform Package
The UK government has also announced a package of over 30 reforms to various financial regulatory measures, the move being called the “Edinburgh Reforms”. The reforms are meant to replace existing EU regulations for purposes such as extending tax breaks for investment managers to bring crypto assets under the umbrella.
This will allow crypto to be included in the portfolios of overseas funds that are managed by entities in the UK, and allow said funds to avoid risks surrounding UK taxation measures.
UK Crypto Regulation 2023: Further Benefits of Financial Services and Markets Act 2023
Global crypto regulation race picks up space, UK crypto runs ahead of the pack
We all know of the global race to regulate crypto, and the reformed Financial Services and Markets Act 2023 makes sure that UK crypto maintains its position firmly as a nation ahead of the pack. The amended act lays down a framework for the advancement of crypto, blockchain, and web3 in the UK by making room for the establishment of regulatory sandboxes. In these environments, new technologies can be tested without real-world repercussions.
As UK government crypto measures grow increasingly positive, this particular move would allow both technological and economical aspects of digital assets to thrive in Great Britain.
Now is a Good Time to Get into UK Crypto
Yep, now is a particularly good time for you to explore the UK crypto currency space. Why? Well, let’s see if we have some relevant answers.
Is crypto trading legal in UK? Yes.
Is UK crypto regulation 2023 positive for the users? A resounding yes.
Are UK government crypto policies expected to make the learning curve smoother for beginners in UK crypto? Absolutely.
Keeping all that in mind, the UK is in fact uniquely positioned to allow users both peace of mind and financial freedom when they invest through UK crypto exchanges. With such golden opportunities, why not explore this new frontier and make your first investment in crypto?Do remember to pick the best UK crypto exchange only after verifying its compliance with all the aforementioned regulatory measures. To discover crypto trading strategies that can potentially maximise profits, stay tuned to Coinbrit for the latest market news that can influence the space!