- The Ministry of Finance of Britain proposed a plan to realize the "ambitions" of a leader in the crypto sphere
- The department's proposals were published for public discussion. The new rules are aimed at implementing the U.K. government's plans to make the country a leader in the crypto industry
The U.K. Treasury Department has submitted draft rules for the regulation of crypto-assets for public consultation. The department said the proposals are aimed at realizing the government's "ambition" to make the country a leader in the crypto industry and create a risk-based environment for cryptocurrency companies to operate and develop in the UK.
The U.K. has set a goal to increase London's global competitiveness in the financial sector, including the cryptocurrency industry. In late November last year, U.K. Treasury Secretary Andrew Griffith confirmed the government's desire to make the U.K. a global hub for crypto-assets and blockchain technology.
The government pledged to introduce a new regulatory regime in April 2022. Public debate on the document submitted by the Ministry of Finance will last for three months and will be completed by April 30.
The new rules will cover the issuance of digital currencies, cryptocurrency platforms including DeFi services, public offerings, transactions, credit products, and how digital currencies are stored.
The document also raises the issue of the need to regulate mining and blockchain validators. The paper's authors point out that the computing power of UK miners is a very small percentage of global bitcoin production - just 0.23%. Therefore, there may be no reason to regulate mining, the paper says. Nevertheless, the government is interested in any opinions on the topic.
Cryptocurrency exchange Binance said it welcomed the U.K. government's action because it believes in the need for effective and appropriate regulation for the mass adoption of digital assets.
"We firmly believe that a stable regulatory environment helps support innovation and is essential to establishing trust in the industry as well as its long-term development," the exchange team wrote on Twitter.
According to the government of the country, cryptocurrencies should be considered as another type of financial asset, rather than singled out as a separate class.
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