Updates on UK Crypto Regulations
Buckle Up, crypto enthusiasts and sceptics alike! With the rise in cryptocurrency usage, the crypto world is experiencing a whirlwind of changes. Recently, the UK government has implemented new regulations on cryptocurrency.
These new UK crypto regulations pose certain seizure rights on suspicious crypto transactions and also potential property classifications for digital holdings. Let’s dive deeper together to explore these four recent updates and explore what they mean for Brits as they interact with their crypto assets.
1. New Law Gives National Crime Agency (NCA) Power to Seize Crypto
According to the Economic Crime and Corporate Transparency Act 2023, the UK government has granted the National Crime Agency (NCA) the authority to seize, freeze, and confiscate suspicious crypto assets or are linked to any sort of illegal activity. Before, this power could not be exercised which resulted in many illegal cryptocurrency transactions and activities over the years.
Now NCA has the complete authority to exercise its power in such suspicions even before an arrest or charge is made. NCA now holds a proactive tool to combat these prevailing financial crimes. The Act is announced to come into effect on April 26, 2024.
2. Upcoming Regulations for Stablecoins and Staking
Stablecoins and staking have always been very famous among crypto consumers, holders, and investors. Stablecoins are a form of cryptocurrencies that are pegged to fiat currency like the US dollar and aim towards price stability. While staking involves holding crypto assets to earn rewards over them.
The UK government has recently announced that it plans to introduce new regulations for stablecoins and crypto staking within the next six months. However, any specific details regarding these upcoming crypto regulations are yet to be unveiled.
3. FCA Takes Action Against Unregulated Crypto Promotions
As cryptocurrency becomes a hot topic among consumers, many illegal crypto firms emerged that promote their financial services. Over the years, these unregulated promotions have been carried on. However, now the Financial Conduct Authority (FCA), the UK financial regulatory body will be taking strict actions against such firms, according to the news.
On February 14, 2024, FCA released data, in which it highlighted its enforcement of actions against unauthorized financial promotions by crypto firms. Just last year in 2023, FCA ordered the removal or amendment of over 10,000 non-compliant financial promotions.
Moreover, FCA has also issued 450 warnings targeting illegally operating cryptocurrency firms that market their services to UK consumers. These rising figures that are being put off the market show FCA’s commitment towards the protection of consumers from these unregulated crypto promotions and the potential risks associated with them.
4. Cryptocurrencies as Property Under Law: Consultation Underway
The Law Commission of England and Wales currently plans to propose a bill on classifying NFTs (Non-Fungible tokens), cryptocurrencies, and other digital assets as legal properties. The deadline for public responses regarding this consultation was March 22, 2024. This movement’s aim is to provide more clarity on the legal status of these digital assets and potentially open doors to further future UK crypto regulations.
Final Remarks
The updates highlight the evolving approach to cryptocurrency regulations by the UK government. Currently, the focus of the government is to combat illegal activities prevailing in the UK to protect crypto consumers from potential risks and to define the legal status of crypto assets. These crypto news updates suggest a measured approach towards balancing innovation and safeguarding financial stability in UK.