Breakingviews – Britain Launches Crypto When It’s Breaking Down
LONDON, Feb 1 (Reuters Breakingviews) – Policymakers wondering how to regulate cryptocurrencies face a big initial question: does the industry need bespoke rules or those already on the books would do? the deal? Britain’s response unveiled by Financial Services Minister Andrew Griffith on Wednesday, is that the existing framework is sufficient. The government intends to regulate digital assets using the Financial Services and Markets Act 2000, legislation applied to the City of London. In comparison, the European Union is presentation Markets dedicated to Crypto-Assets, or MiCA, while some US senators floated likewise adapted proposal.
Britain’s approach is tough on bitcoin and its ilk. “Same risk, same regulatory outcome” is the mantra. Any UK-based cryptocurrency lenders or those who do business with Brits, for example, may have to operate with minimum capital and liquidity requirements. The consultation also notes that the City and Wall Street generally separate activities consolidated by crypto groups, such as being a broker, exchange, lender or custodian. On the heels of Sam Bankman-Fried’s FTX collapse last year, Britain’s kick lands when the industry is down. At the same time, the scandal surrounding the bankrupt exchange suggests a quick kick is in order. (By Liam Proud)
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(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
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