The coming weeks will be decisive for the British crypto industry. The UK government plans to present to the public a strategy for regulating the crypto market. According to industry sources who wish to remain anonymous, special attention will be paid to the legal regulation of the sector and stablecoins.
Stability replaces risk
Money laundering, high volatility and, as a result, the risks of participants are the main disadvantages of the cryptocurrency market. Recently, they have been joined by the potential possibility of evading the sanctions that have been imposed on the Russian Federation in connection with its invasion of Ukraine. But competent state regulation allows achieving sufficient financial stability.
An important step in limiting the risks of the crypto industry was made by US President Joe Biden. On March 9, he signed an executive order coordinating the actions of US federal agencies to regulate cryptocurrencies. Similar steps are expected from the British government and Finance Minister Rishi Sunak.
Cryptocurrency collapse or development?
Until the publication of the official strategy for the development of the cryptocurrency market, the industry in the UK is in suspense. The fact is that until March 31, operating companies in the sphere must submit applications for registration with the Financial Conduct Authority (FCA). Only organizations that meet financial fraud standards will be fully authorized to continue operating.
To date, only 33 companies are included on the register. More than 80% of firms were denied or withdrew their applications because of too slow processing of requests by FCA representatives. Among the organizations that could be out of business in the UK in a matter of days are the fast-growing financial technology companies Copper and Revolut.
While government representatives do not comment on plans for the future, sources report on the readiness of state bodies to get into the complexities of the market and their special loyalty to stablecoins. In particular, negotiations are conducted with the Gemini cryptocurrency exchange, which issues its own Gemini Dollar currency based on Ethereum.