The United Kingdom
has presented two new measures aimed at the cryptocurrency industry: the first intends to foster “safe adoption of cryptocurrencies,” while the second gives the government authority to “seize and recover crypto assets.” In the Queen’s Speech, Prince Charles detailed the UK government’s legislative plan for the coming parliamentary year. Because the Queen was unable to attend, the monarch’s son read the Queen’s Speech for the first time.
The first of the two bills, the Financial Services and Markets Bill, aims to “maintain and enhance England’s status as a global leader in financial services, to ensure the sector delivers for individuals and businesses throughout the nation,” as Prince Charles indicated during the Queen’s speech. The new regulation will help to create a more competitive market for numerous industry players while also allowing for more effective capital allocation.
The second law, dubbed the ‘Economic Crime and Corporate Transparency Bill,’ was drafted in response to the rising number of cryptocurrency-related scams and robberies. “A measure will be introduced to improve authorities to combat illegal funding, curb economic crime, and assist businesses in expanding. Measures to support the security forces and assist them in protecting the UK government will be implemented “In his speech, Prince Charles mentioned the following.
According to the Queen’s Speech briefing note, “the development of a civil forfeiture power will lessen the risk posed by people who cannot be criminally punished but use their wealth to pursue wrongdoing.”
In the wake of the recent cost of living crisis, the address also underlined a focus on the economy and on assisting with the cost of living. The Bank of England, the UK’s central bank, will also concentrate on getting inflation back to its objective.
Cryptocurrency Adoption Statistics in the United Kingdom
Statistics on Cryptocurrency Adoption in the United Kingdom
For the April 2022 study, Finder polled 2,053 Internet users in the United Kingdom, which came in 25th out of 27 nations studied. The United Kingdom has a 7 percent cryptocurrency ownership percentage, which is higher than New Zealand (6.8%) and Germany (6.8%). (6.7 percent ). This rate, however, is lower than the global average of 14.6%.
In the United Kingdom, ownership has ebbed and flowed, with 7% of respondents claiming they owned crypto in November 2021, 6.1 percent on January 22, and now 7% in the April survey. Since the November survey, when an average of 11.2 percent of respondents claimed they owned crypto, ownership has fluctuated. This was follow by 15% in the January 2022 report, before declining slightly to 14.6 percent in the April 2022 report.
Cryptocurrency regulation in the UK
The United Kingdom is planning to establish a wide regulatory framework that will outline how bitcoin businesses can set up shop and function in the country.
In the next few weeks, the UK Treasury will publish a package to regulate cryptocurrency. Many in the crypto world applaud such a strategy, expecting that the United Kingdom will follow in the footsteps of the United States and the European Union.
The intention to regulate cryptocurrency in the United Kingdom was first revealed by CNBC earlier this week.
“In an email to CoinDesk, Humayun Sheikh, CEO of artificial intelligence company Fetch.ai, stated, “Of course, lowering the financial risk for crypto investors is crucial, but we hope it does not become over-regulated.” “We’re excited to see how the rules will address the existing opportunities and difficulties.”
The wake of increased cryptocurrency use, the United Kingdom has become the latest state to step up attempts to regulate the industry more comprehensively.
In terms of adoption, the country is a leader in Europe for decentralized financing (Defi). According to a Chainalysis analysis, crypto investors spent $170 billion on Defi platforms between June 2020 and July 2021, the biggest in Europe during that time period.
UK Treasury is planning to regulate Cryptocurrencies in the UK?
As part of a larger effort to make the UK a center for digital payment companies, the Treasury has revealed that it will regulate some cryptocurrencies.
It is expected that “stable coins” will become accept means of payment, giving users more trust in utilizing digital currencies.
Stablecoins are digital currencies that are connect to traditional currencies or assets such as gold.
They are less volatile than Bitcoin and other cryptocurrencies.
The Treasury also stated that it would consult later this year on regulating a considerably broader variety of digital currencies, without specifying which ones.
The government is eager to support the development of tomorrow’s cryptocurrency firms in the UK and create the jobs they will create, said Chancellor Rishi Sunak, “and by regulating properly, we can give them the confidence they need to consider and invest in the long run.”