Crypto regulations in the UK: one more resolution!

Major nations and developing countries… All are doing what is necessary to establish strong and consistent crypto regulations. In the UK in particular, there is no comprehensive digital asset regulation yet. Regulators are considering adapting crypto regulation in the UK to Basel III rules.

Crypto regulation in the UK based on Basel III rules

As the UK gradually works towards adopting a CBDC by the end of the decade, the UK parliament is considering the Financial Services and Markets (FSM) Bill. It has also just finalized the Basel III rules which Vicky Saporta says could serve as the basis for crafting stronger and broader crypto regulation.

“The Prudential Regulation Authority or PRA plans to come up with rules on the issuance and holding of digital assets,” said the executive director of prudential policy at the Bank of England. The main goal would be to limit banks’ capital exposure risks to cryptocurrencies to less than 1%.

Another important point: the new regulations will not only concern crypto. It will also extend to stablecoins.

Towards a finer approach to cryptography

To establish consistent and strong crypto regulation in the UK, the PRA will work together with the BOE. According the explanations of Saporta, the goal is not only to regulate the crypto market. Regulators must also set standards that are consistent with other industry rules.

Thus, the new version of the crypto regulations in the United Kingdom will achieve the following objectives:

• harnessing the UK’s strengths as a global financial centre;
• maintain confidence in the UK as a place of commerce;
• adapt the regulations to UK circumstances.

Since the advent of digital assets, the United Kingdom has multiplied the declarations on new regulations to be applied. But till now, there is still no clear and solid crypto regulatory framework. Let’s hope that the next rules to come will “really” take effect!

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