British Finance Minister Rishi Sunak is expected to announce crypto regulations in the coming weeks
According to a recent report published by CNBC, the UK government is preparing to unveil its cryptocurrency regulatory framework in the near future.
Citing sources with knowledge of the matter, the report states that the new crypto regulations will be positive for crypto businesses and investors.
The main objective of the upcoming regulatory framework is to get rid of the regulatory uncertainty that continues to haunt the industry.
Treasury officials are working side-by-side with cryptocurrency businesses and trade groups to come up with common-sense rules. Gemini, a popular cryptocurrency exchange led by the Winklevoss twins, is expected to be part of the conversation.
Treasury officials have reportedly attempted to understand the ins and outs of some sophisticated cryptocurrency products, such as stablecoins.
Earlier this week, Reuters reported that the Bank of England (BoE) had begun work on Britain’s first regulatory framework.For now, cryptocurrencies remain mostly unregulated, despite experiencing substantial growth in the UK and other countries over the past year.
Despite the proliferation of crypto, the BoE’s Financial Policy Committee (FPC) concluded that it threatens the financial stability of the country. However, the unbridled development of crypto could be risky in the future.
Earlier this year, the UK’s Financial Conduct Authority (FCA) banned cryptocurrency ATMs.
Last year, BoE Governor Andrew Bailey called cryptocurrencies “dangerous”.
Of course, the UK is not the only country currently working on regulating the cryptocurrency sector. US President Joe Biden recently published the country’s long-awaited executive order, which was widely praised by members of the cryptocurrency industry despite the lack of clarity on some key points.