- The UK Treasury closed the collection of opinions on the regulatory framework in the field of cryptocurrencies
- Some large counterparties reacted to it, including a16z, Binance and Circle
- Government warned against repeating US mistakes and urged to ‘think big’
At the end of last month, on April 30, the Ministry of Finance officially closed the collection of opinions on what the regulatory framework should be in the cryptocurrency segment. Major “players” generally supported the position of the department, but also urged him to “think broader.”
The consultation paper was published in early February. Many large counterparties reacted to it, including a16z, Binance and Circle.
Andreessen Horowitz warned Britain against repeating the US mistake. Binance highlighted the risks of “disproportionate” regulation, while Circle called for making the mechanism for licensing service providers as “simple and transparent” as possible.
“This is a welcome step towards regulatory clarity. If carefully applied, this framework will only accelerate the introduction of socially beneficial innovations, while reducing both criminal and financial risks. Riccardo Tordera Ricci from The Payments Association.
Initially, the UK Treasury planned to “fit” cryptocurrencies into the current regulatory framework. In particular, these are:
- licensing mode for VASP;
- the supremacy of the Law on Financial Services Markets;
- classifying stablecoins as money in the regulatory field;
- using the principle of “same risk, same regulation” (proportional control).
And in general, crypto lobbyists in the UK approve of this approach. But they are also calling on the Treasury to “think big”, to use the EU’s example so that the UK does not remain “isolated”.
Here we are talking about the set of rules MiCA. Moreover, 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 everything goes according to plan, the Ministry of Finance will present a draft regulatory framework by early 2024.
