Global Courant 2023-04-18 10:38:23
Britain could introduce specific laws aimed at regulating the cryptocurrency industry in the next 12 months, a top legislator told CNBC.
The UK government laid out plans to regulate crypto assets in February and opened its suggestions for consultation. The consultation period ends on April 30.
Andrew Griffith, economic secretary of the UK Treasury, said in an interview Monday that specific crypto regulation could come into effect in about a year.
“We’ve got control of our rulebook back, not something the UK has had for decades,” Griffith told CNBC, referring to Britain’s exit from the European Union.
“So we have the opportunity to move in a flexible and proportional way. And I’m absolutely committed to making the most of that opportunity.”
Jurisdictions around the world, from Dubai to Singapore, have been trying to position themselves as crypto-friendly places to encourage businesses to establish themselves there.
The US, meanwhile, has cracked down on cryptocurrency companies, with regulators stepping up enforcement action against companies.
However, Britain wants to position itself as a place for future crypto companies. Last year, Rishi Sunak, the then British Chancellor of the Exchequer and now the Prime Minister, said his ambition was to make Britain a “global hub for crypto-asset technology”.
The UK is seeking legislation to regulate the cryptocurrency industry as it looks set to become a “global hub” for cryptoassets.
Wael Alrewei | Ivory | Getty Images
Crypto companies told CNBC they want regulatory clarity and are pressuring governments to come up with frameworks for them to work with. In the US, the Securities and Exchange Commission has used existing securities rules to target cryptocurrency companies.
Griffith said the UK’s regulatory approach would mix both existing and new regulations.
“Where possible, we want to see the same asset, same transaction regulated in the same way. But there are some additional opportunities in the crypto asset or distributed ledger space and we want to take advantage of that,” Griffith told CNBC.
The legislator pointed to the Financial Services and Markets Bill, currently being passed by parliament, as an example of where upcoming legislation already contains some provisions on cryptocurrency. That particular law, which is not yet in effect, aims to bring asset-backed stablecoins into regulation.
Stablecoins are a type of cryptocurrency designed to mirror real-world assets such as the US dollar. They are often backed by real assets such as bonds or fiat currencies.
Distributed ledger technology, also known as blockchain, refers to multiple records of transactions that are not owned by a single entity. They can be shared and updated simultaneously to ensure accuracy for all parties involved in a transaction.
