The United States (US) and the United Kingdom (UK) are collaborating closely on crypto regulation. Britain’s Financial Conduct Authority (FCA) said they are deepening ties on crypto regulation. The FCA also cleared that companies now understand the need for regulations. It brings certainty to the market and allows the industry to flourish in a controlled manner. Crypto regulations are also good for adoption as investors will feel safer.
US and UK are collaborating closely on crypto regulation
Nikhil Rathi, the chief executive at FCA, has recently talked about their goals for crypto regulation in the Peterson Institute of International Economics. The primary thing they are focusing on is limiting money laundering on platforms. So, they are implementing strict rules that will help control the same, and these rules are not just specific for crypto platforms. Any company that wants to operate in the UK markets must follow it.
The US and UK will be collaborating closely for stablecoin regulation and exploring CBDCs. It is one of those topics that every country is talking about currently. Having a joint approach to CBDCs could help the US and UK come out on top of their development.
Regulations are important, and users want it
Earlier crypto investors and users were of the idea that regulations are bad for the growth of the market. It is true to an extent. For example, if countries bring negative regulations (like the 30% tax in India), it will obviously hinder growth. However, most users can now agree on the importance of regulations. In a survey conducted by the FCA with over 200 participants, they found that investors want proper rules and laws with high priority.
Things should be taken slowly by the authorities, and companies must be given time to understand and comply with the requirements. The UK government has already outlined a bill for the next year that talks about safe crypto adoption. They also want to ensure that seizing or recovering crypto becomes easier so that ransomware attacks can be controlled. The UK wants to become a crypto hub, and they already have plans in place to make it happen.
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