The UK faces challenges in developing effective cryptocurrency regulations, lagging behind the progress made in the European Union and the United States. A comprehensive regulatory framework is expected to be implemented by 2026.
Comparison with EU and US
Experts indicate that the UK's cryptocurrency regulation efforts, led by the Financial Conduct Authority (FCA) and HM Treasury, are slower than those in the EU and US. Comprehensive regulatory framework expectations are not anticipated until 2026.
Importance of Institutional Credibility
Experts emphasize that the new regulations could provide institutional credibility and access to cheaper capital, though they present an adjustment challenge for companies. The importance of regulation is highlighted in view of attracting institutional investors by providing financial clarity.
Future of Regulation and Its Impact
The new regulatory framework will integrate cryptoassets into traditional securities law. It is expected that the regulation of stablecoins will be akin to that of securities, with stringent disclosure and capital requirements. However, full regulation will impact all mainstream crypto assets, potentially leading to increased operational costs for crypto service providers.
The anticipated outcomes of the regulations suggest the establishment of a more stable and credible market environment in the UK, which could enhance its global position in the digital asset sphere. However, navigating significant logistical hurdles and potential resistance from market players will be necessary.
