Crypto regulations are becoming more and more clear in Europe. A major breakthrough is looming as UK lawmakers are now calling for a specific government role to be put in place to oversee this booming sector. The move aims to protect consumers while cementing the country’s leadership position in the digital asset industry.
Key recommendations for effective regulation
The regulatory landscape for cryptocurrencies is gradually clearing up in the UK. Currently, companies operating in the crypto space must register with the Financial Conduct Authority (FCA) in order to operate in the country.
However, lawmakers believe that these existing regulations are no longer sufficient to cope with the rapid growth of the sector.
Recently, an all-party parliamentary group in the UK, the Crypto and Digital Assets (APPG), published a report comprising 53 recommendations aimed at regulating the crypto sector.
Among these recommendations, one of the main ones is to establish a joint and coordinated approach between all government departments and agencies concerned with the regulation of crypto, digital assets and blockchain technologies. This approach aims to ensure consistent and effective regulation.
In addition, the report highlights the need to protect consumers and establish safeguards to promote economic growth. According to Lisa Cameron, President of the APPG, this regulation is essential to preserve the UK’s position as a leader in the crypto industry.
Towards coordinated regulation
Separately, the report also highlights the key role of UK regulators in delivering the government’s ambition to make the UK a global crypto hub. He emphasizes the need for a coordinated approach between different government departments and agencies to address the challenges posed by the rapid growth of digital assets and blockchain technology.
To facilitate this coordination, the report recommends the creation of a new coordination role within government. A kind of a “Crypto Tsar”. This manager would play a crucial role in coordinating departments to ensure a consistent and effective regulatory approach.
The future of crypto regulation in the UK remains to be determined, as well as its impact on the regulatory landscape. However, this step testifies to the United Kingdom’s desire to maintain its leading position. Recently, the country has also funded a department dedicated to the metaverse and web 3.
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