UK and US are trying to tighten the knot of collaboration for crypto regulation.
On Jul 19, 2022
It is surely a good news for the cryptocurrency industry, the UK and US are tightening their collaboration on crypto regulation. This increased cooperation is seen as a positive step by many in the industry. With increasing scrutiny from governments all over the world, it is more important than ever that the major players work together to create a safe and sustainable environment for cryptocurrencies to flourish.
Crypto has a crashing market due to the lack of regulations. To regulate cryptocurrency, UK and US are hoping to prevent future problems by introducing new rules. The new rules will require crypto exchanges to disclose information about their customers and transactions. The Exchange Commission will also be able to bring charges against exchanges that engage in fraud or deception.
One of the great benefits of this collaboration is that it will allow the two countries to share information and resources more easily to look to create a more unified front in order to combat money laundering and other illegal activities related to cryptocurrencies.
This will help to make it easier to track down criminals who are using cryptocurrencies to launder money or carry out other illegal activities. It will also allow the two countries to pool their resources and expertise in order to develop more effective regulations.
One part of disagreement is related to the way in which crypto assets should be classified. The UK has generally taken a more permissive approach, while the US has been more cautious. Another point of disagreement is whether or not crypto exchanges should be required to obtain a license. The UK has proposed a light-touch approach, while the US has suggested a more heavy-handed approach as it has already made it compulsory.
The U.K.’s Financial Conduct Authority’s chief, Nikhil Rathi said on Wednesday at Peterson Institute for International Economics: “Crypto assets are opaque, volatile and can pose a real threat to unsuspecting consumers.”
He said the FCA is focused on three key goals when it comes to regulation:
- To stop crypto-related success stories from being scams
- Make sure businesses don’t use investors’ money to cover up their losses
- Educate people so they understand the risks of investing in crypto assets
Rathi’s comments come as the Securities and Exchange Commission is also stepping up its scrutiny of digital assets.
A new bill that was outlined in the UK’s Queen’s Speech was to support the safe adoption of cryptocurrencies. The bill, which is also aimed at supporting “resilient outsourcing to technology providers,” would help to protect consumers and businesses from risks associated with cryptocurrencies. In particular, the bill would require businesses to disclose their use of cryptocurrency-related services to the Financial Conduct Authority. The government is also considering whether to extend existing financial regulations to cover ICOs and other digital token sales.
The goal of these regulations is to protect investors from scams and make it easier for law enforcement to track down criminals. It remains to be seen how effective these regulations will be. There are still some disagreements between the two countries over specific points of regulation, but it is clear that the UK and USA are taking action to address the problems with the crypto market.