Regulation is actively at work in the crypto industry, despite appearances. The European Union plans to introduce new regulations in 2024, and the United Kingdom is also striving not to fall behind. Andrew Griffith, the British Treasury’s Secretary of State, announced in an interview with CNBC last Monday that the kingdom aims to establish new regulations within 12 months. The regulations should be pragmatic and proportionate, enabling the crypto industry to thrive while adhering to clear standards.
Griffith believes that, thanks to Brexit, the country can position itself effectively in this field for the first time in decades. The UK is now solely responsible for its regulations, unlike before when EU laws had to be considered. The introduction of regulations for crypto is part of a broader set of financial regulations that will settle payments with stablecoins.
The British government hopes to introduce general crypto regulations in the next 12 months. Griffith notes that a digital pound, or CBDC (Central bank Digital Currency), would require significant development due to issues surrounding privacy and technology. He stressed the importance of using the best technology and infrastructure to create a sovereign digital currency.
Several weeks ago, it became apparent that the British government remains receptive to the crypto industry. After all, this was one of Prime Minister Sunak’s main campaign promises. However, the banking sector in the UK appears to be less enthusiastic. British banks have recently refused to engage with crypto companies, ostensibly due to concerns about the sector’s riskiness.
Not too long ago, the British banking system encountered difficulties because the British government bonds that the sector utilized as collateral had experienced significant devaluation. In the meantime, Sunak’s initiative involving non-fungible tokens (NFTs) has been postponed due to a range of other priorities.
