The question of regulations is a recurring one. With each new incident in the crypto industry, experts start talking about the importance of regulations with renewed intensity and vigor.
However, the best approach to the issue is to move carefully and sequentially by implementing one small change after another until a good point of equilibrium is achieved.
The UK is one of the most responsible countries in terms of its approach to crypto assets.
While their economic policies are questionable, there are many reasons why so many crypto companies are choosing the UK as their main market. The rules are clear and new ones are announced in advance.
The Financial Conduct Authority is working with the government
An additional set of rules will be proposed to the UK parliament in the near future. The package of documents is already pending for hearing and will be discussed by lawmakers whenever possible considering the delicacy of the current situation in the world and the country.
The Bill is called the “Financial Services and Markets Bill” and will focus on some fundamental aspects of the crypto industry.
For starters, it will define what stablecoins and crypto assets mean in the context of trading. Additionally, some rules will be added to clarify to buyers, how crypto assets will be handled on the governmental level.
This bill is a part of the currently ongoing effort to restructure the UK’s financial system following the painful separation from Europe.
The biggest change that users should be aware of is that any advertisements of digital currencies by foreign companies will be completely prohibited and the oversight will cover all aspects of the industry which may be good or bad depending on policies that will be implemented down the line.
Regulations are important for the adoption
Without comprehensive rules, the general population will never use cryptocurrencies to a degree where these assets are considered staples of the global economy.
While many hardcore enthusiasts of crypto say that adding regulations will negatively affect decentralization, the reality is that some oversight is necessary to reach the state where the whole world is taking crypto seriously.