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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Nov 14, 2024 09:09 UTC
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New UK Crypto Regulations Launch to Challenge Trump’s Strategy
UK government is introducing new crypto regulations to attract crypto businesses and compete with the US's pro-crypto stance.
The regulations will focus on stablecoins and staking, providing a clearer framework and enhancing investor protection.
The UK is also advancing broader regulatory efforts through the Property Bill, recognizing digital assets as personal property.
The UK government is set to introduce new cryptocurrency regulations this month to prevent local startups from being attracted by Donald Trump’s pro-crypto policies in the US. The Treasury’s upcoming legislation, which focuses on stablecoins and staking, aims to provide clearer rules and strengthen the UK’s position as a leading digital asset hub.
However, there are concerns within the industry about the UK’s slow regulatory progress, especially as the European Union has already made strides with its Markets in Cryptoassets regulation. What’s brewing? Let’s find out.
New Policies at a Glance
To compete with the growing appeal of the US crypto market, the UK Treasury is focusing on stablecoin regulation. According to a Bloomberg report, two new bills will clarify the rules for stablecoin providers, addressing regulatory gaps and ensuring the UK remains an attractive destination for crypto businesses. These bills could include exemptions for services like staking and custodial wallets, offering a stable framework for growth.
Alongside stablecoin regulation, the UK is pushing forward with broader efforts through the Property Bill. This bill will protect the ownership rights of digital assets like cryptocurrencies, NFTs, and carbon credits. By legally recognizing these assets as personal property, the UK aims to enhance investor protections and address issues such as fraud and ownership disputes.
Shifting Investor Focus
Trump’s rise in the US has shifted investor attention to the country, which is seen as a safe haven for digital assets. His pro-crypto stance, including potential moves like designating Bitcoin as a strategic reserve asset, is expected to attract significant investment and spark a global FOMO (fear of missing out), possibly leading other countries to reconsider their crypto regulations.
In response to the US’s growing crypto appeal, the UK’s regulatory efforts aim to strike a balance between investor protection and market growth.
UK Crypto Market Analysis
The UK crypto market is showing resilience in 2024, with 18% of consumers still holding crypto, the same as in 2022. Sell-offs have been lower than in other countries, and a strong 59% of UK crypto owners are comfortable investing at least 5% of their portfolios in digital assets, surpassing the global average. Plus, many former UK crypto holders are ready to re-enter, with 77% planning to buy again within the next year, reflecting steady confidence in crypto as a long-term investment.
As the crypto industry continues to mature, the UK’s role as a global leader remains to be seen. Their journey is just beginning!
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