Crypto Regulations and Payment Methods in the UK and the EU
The UK and the European Union (EU) are working on regulations for crypto trading in their respective nations.
After the UK’s exit from the EU, the Financial Conduct Authority (FCA) regulates financial services in the UK. Earlier, the Financial Times reported that Britain’s Treasury is working on new crypto regulations, including restrictions on advertising. Meanwhile, the EU is moving ahead with its crypto policy.
EU and UK approach crypto regulations differently
Earlier in June, the European Union agreed to introduce Markets in Crypto-Assets (MiCA) to reduce risks for crypto users who want to trade crypto assets. But the regulations have not been implemented.
Earlier, European commissioner for financial services Mairead McGuinness highlighted on CNBC, “It will not come into effect for a year, but I think it’s already having an effect.”
She added, “Some of those who were involved in crypto, from the very outset, were doing it because they didn’t want to be part of the regulated, managed system. They want it to be separate from and in parallel to it. That’s a very dangerous path.”
In a September debate on the bill, the UK’s new Prime Minister Rishi Sunak said the upcoming financial sector policies would concentrate on the UK’s medium-term fiscal plan to put public spending on a sustainable footing, reduce debt and restore stability.
EU on crypto assets
Cryptocurrency is considered a legal asset in most of the EU nations. Earlier, the EU government decided to launch the Markets in Crypto Assets (MiCA) framework. MiCA will help in combating crypto fundraising schemes in the EU nations. Meanwhile, in November, the European administration delayed a vote on MiCA.
Before the MiCA bill passes into law, lawmakers must first accept it by voting in the European Parliament, and the European Council has to sign it. It will take 12 to 18 months to come into effect after that.
UK on crypto assets
There is no specific law for cryptocurrency in the UK; the country considers crypto assets property but not legal tender. Crypto exchanges must register with the UK Financial Conduct Authority (FCA).
UK loans for small businesses became more expensive
On December 29, the Financial Times reported that currently, it is more difficult and expensive to get a loan for small investors in the UK. The report shows that the nation raised a 10% interest rate for medium businesses.
Martin McTague, chair of the Federation of Small Businesses (FSB), said “Many small firms now are in a highly precarious position, carrying debts from the pandemic, with the Bank of England raising the base rate, and with funding options getting scarcer and costlier.”
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