UK Financial Services Bill Is Looking to Regulate the Crypto Space as Well

The UK is currently looking like one of the biggest crypto hubs worldwide. With its adoption index slowly growing and more people making transactions now than before, it is becoming very obvious that the UK is well on its way to become the biggest crypto country.

However, this unprecedented rise in popularity in the UK of cryptocurrencies means that the government is looking to better regulate it. With more people coming into the market, it is even more likely that they could fall for a possible scam or for some sort of Ponzi scheme.

While lawmakers in the UK have not drafted a new bill from scratch, many have instead decided to amend an existing bill that was already regulating stablecoins. These crypto options needed a significant deal of oversight, since it is connected to the traditional financial market.

Therefore, as the popularity of stablecoins started to increase, British law makers would go on to draft various provisions and make various necessary changes to how they operate. Although the amendments do not make it anything comparable to MiCA in Europe, they are still a step in the right direction for one of the biggest countries for cryptocurrencies.

Making Necessary Changes to the Bill

The bill is a staggering 335 pages long and focuses on clarifying how stablecoins would work, and what they would need to follow if they wished to effectively operate in the country. And as for the amendment, it came with an explanatory statement that could help people understand why it is in place.

According to this statement, the amendment looks to give relevant regulatory bodies permission to effectively various cryptoassets or activities that are relating to the cryptoassets. By giving them this power, investors in the country can now easily invest without worrying about a possible fraud.

Still No MiCA

The important distinction to make about the UK financial services bill amendments is that it is still just a placeholder before the actual rules and regulations come around. As a placeholder, regulators will do the best they can, but there is still a need for more comprehensive legal text.

Many investors who are in favor of crypto regulation are making comparisons to MiCA, the EU solution to regulating crypto. MiCA solves a lot of the problems that traders faced, and it was able to address serious shortcomings in the market and introduced solutions to them.

A Long Way to Go

Fortunately, the UK government still has time to work on legislation that will better regulate the crypto market. They will have to do it before the UK become a major hub for cryptocurrencies, since more people will be likely to fall for a scam.