The government of the UK has finally completed the exercise of formulating the new set of regulations to be implemented on crypto assets. The intention is to collect, under one roof, various functions that will come under the jurisdiction of the Financial Conduct Authority (FCA). The primary factor is that all companies engaging with the retail sector in the UK will be required to acquire a certification.
As per the government’s game plan, the legislation will be released in stages. In the case of the licensing of the fiat-supported stablecoins, they will be executed towards the beginning of 2024.
As per the instructions of the FCA, businesses connected with crypto assets will be required to get themselves listed, such as crypto exchanges, which will have to come up with admission rules and make public the information in terms of the registration of fresh assets.
The government believes that more international associations are necessary before rules can be implemented, which is why decentralized finance (DeFi) was not mentioned in the suggestions. Rather than establishing an entirely new framework, the new efforts will be incorporated into the current set of UK market regulations. This is happening as a result of UK lawmakers passing a bill that gives law enforcement agencies the authority to block any cryptocurrency assets that aren’t legal.