The UK synchronizes cryptocurrency regulation with the United States to enhance global integration.
US leadership in Bitcoin reserves is prompting countries like Switzerland to consider adding Bitcoin to their national reserves.
The emergence of Donald Trump as the 47th president of the United States significantly changed the cryptocurrency landscape, bringing stronger support for digital assets.
This shift not only helps the US recover from its previous restrictive approach but also creates a ripple effect in other countries, encouraging them to embrace the growing industry.
A notable example is the UK, preparing to bring cryptocurrency into mandatory regulation.
The UK learns from the US
Finance Minister Rachel Reeves confirms that new draft laws will extend existing financial regulations to cryptocurrency companies, synchronizing the UK's approach with that of the United States rather than the European Union.
With the two countries preparing to cooperate in shaping cryptocurrency regulation, this move marks a significant turning point in the acceptance and global integration of cryptocurrency.
The treasury commented following Reeves' announcement,
“Under the new regulations, cryptocurrency exchanges, brokers, and dealers will be brought under the regulatory scope – preventing illegal activities while supporting legitimate innovation. Cryptocurrency companies with customers in the UK will also have to meet clear standards for transparency, consumer protection, and operational sustainability.”
The role of the UK in adopting cryptocurrency
According to a new report from Chainalysis, Central and South Asia along with Oceania topped the 2024 index, with seven of the top 20 countries from this region, and the UK ranked 12th.
Notably, around 12% of adults in the UK currently own or have owned cryptocurrencies such as Bitcoin [BTC] or Ethereum [ETH], a significant increase from just 4% in 2021.
Despite this tension, Bank of England Governor Andrew Bailey has repeatedly warned about the risks of Bitcoin, emphasizing that it cannot be considered a safe store of value like traditional currencies.
However, he acknowledges the need for regulation on stablecoins, a type of digital currency designed to maintain a fixed value against assets like the USD.
The challenge of the UK
This comes at a time when industry leaders warn that the UK risks losing its position as a fintech and cryptocurrency innovation hub due to an increasingly stringent regulatory environment.
According to these executives, the national regulator has adopted an overly strict view when registering new companies.
They also point out that pension funds managing trillions of pounds are becoming overly cautious, further dampening growth in this sector.
This cautious approach is seen as a barrier to emerging companies and investors, potentially forcing them to seek more welcoming innovation hubs.
Furthermore, what is happening?
Nevertheless, the influence of the US in shaping global cryptocurrency policy remains significant, serving as an inspiration for many countries.
In fact, with the US leading in establishing Bitcoin reserves, other countries have started to follow suit.
For example, Switzerland is now participating in the discussion and is considering adding Bitcoin to its national reserve fund.
This transition reflects an increasing recognition of Bitcoin as a legitimate asset and highlights how the US sets precedents that other countries are eager to adopt.
Source: https://tintucbitcoin.com/anh-quoc-cong-bo-luat-tien-dien-tu-dong-bo-cung-hoa-ky/
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