Dear Readers,
Various countries around the world and its central banks are indeed afraid of the growth of the cryptocoins which fears that it would overtake their economy and the fiat currency systems.
But the growth is inevitable. Indeed many countries welcome the the crypto eco system and the situation is changing around the global after the acceptance of Bitocoin Spot ETFs in the US.
Many countries are to follow this and various efforts are on in this direction. The crypto capital hubs in the world like UAE, Singapore, Hongkong are encouraging the crypto space with policies and a conducive climate.
India impose heavy taxation on crypto assets. Recently we have noticed at Thailand has slashed the VAT to the crypto assets. Hongkong is working on approving its BTC ETFs.
Many investors including the Institutional Investors have also switched over to the crypto hubs for safeguard and for further investments as well.
At this time, The UK’s Treasury Economic Secretary Bim Afolami said that the UK government is to bring new regulations related to stablecoins and the crypto staking services. Though he said there is no indicative deadline, this is more likely to be introduced within the next six months time.
UK is being the fore runner in imposing various regulations for the crypto coins which are largely crypto friendly. In October 2023, the UK government released proposals to bring the cryptocurrency sector under financial regulations. With this, it is mandated that all the firm would get clearance from the FCA to engage crypto-related activities.
Following this announcement, several cryptocurrency firms that includes Revolut and Bitfinex, suspended their services in the UK.
We also know that the largely known crypto firm, Coinbase began requesting risk acceptance forms from its UK users starting last month, to comply with FCA rules.
Oliver Linch, the lawyer and CEO of the cryptocurrency exchange Bittrex Global, stated last month that
“There are quite strict marketing rules for some crypto players by the FCA. They are also extremely deterrent. This situation is emerging as a reason for players in the cryptocurrency space to leave the UK.” Bittrex Global announced its liquidation in November due to regulatory issues and shrinking market share.
What would be expect on this proposed law?
This proposed legal framework on stablecoin and crypto staking would invariably affect major players in the field of stablecoins that includes Tether and Circle.
If it would be a threatening kind of act, there will be panic and huge dump in the cryptocurrency market.
