The UK government plans to bring the cryptocurrency industry under the regulation of mainstream financial services. The Treasury announced on Tuesday, January 31, that it will announce proposals to regulate a wide range of crypto-asset activities in line with traditional finance.
The UK plans to regulate the crypto industry!
The move was welcomed by the CEO of Nigel Green of the deVere Group, one of the world’s largest asset managers. Green stressed the importance of regulation in the future of digital finance, noting that a strong regulatory framework will protect investors, fight crime and reduce the risk of financial destabilization, according to a press release shared with Finbold on Feb.
“The news that digital currencies are beginning to be brought into the regulatory tent in one of the world’s largest economies and one of the most tightly regulated markets shows that cryptocurrency is now mainstream. His age has come. A strong regulatory framework will help protect investors, fight crime and reduce the likelihood of financial stability.”
In addition to protecting investors, Green believes the regulation will position the UK as a global hub for cryptocurrency and fintech, attract businesses and create jobs.
He states that this will further increase the confidence of enterprises to think long-term and invest.
“This move will help further position Britain as a global hub for crypto and more generally for fintech. Effective regulation will help attract tomorrow’s businesses and the jobs they create to the UK, as it gives them the confidence they need to think and invest long-term.”
UK government shows interest in CBDC
The government has also expressed interest in launching its own central bank-backed digital currency (CBDC), which Green believes will further strengthen the situation for cryptocurrencies.
According to a study by the deVere Group, 82% of high-net-worth clients with investable assets between £1m and £5m sought advice on cryptocurrencies. Green stated that this momentum of interest will increase even more as the bear market or the ‘crypto winter’ of 2022 dissolves. He states that the recent positive performance of cryptocurrencies, including the 40% increase in the value of Bitcoin since the beginning of the year, will not go unnoticed by investors.
The CEO said that the move to regulate cryptocurrencies highlights a growing awareness of the core values of digital currency, including being digital, global, borderless, decentralized and tamper-proof. He concluded that the regulation would further strengthen the crypto industry and instill confidence in investors, which would have a positive impact on prices in the long run.
All in all, the UK government’s decision to regulate the cryptocurrency industry is an important step towards mainstream acceptance and a strong regulatory framework. The move is expected to benefit both investors and the UK economy, positioning the country as a global hub for cryptocurrency and fintech.