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- Crypto companies in the United Kingdom are trying to be a strong part of the country’s financial system.
- The United Kingdom is continuously showing its efforts to be a fintech leader in the globe.
In the U.K. the government, regulators, and banks are working to frame a good financial structure that also involves crypto companies. By developing strict regulations for local crypto companies, the U.K. can set a good example for others.
Crypto companies all over the world are now healing from the injury of the collapse of leading crypto firms. As the crypto insiders still have not forgotten about the mishappenings in the previous year. Whether it was about the crash of Tera-LUNA, or the bankruptcy filing of crypto firms. Most of the crypto enthusiasts don’t want that ‘crypto winter,’ will again come and hit them even harder. So, many countries in the world are working to frame strict rules and regulations for crypto companies.
Crypto Companies in The U.K.
The Financial Conduct Authority (FCA) is the main financial regulatory body in the U.K. It has “oversight to check that crypto companies have effective anti-money laundering (AML) and terrorist financing procedures in place, but generally crypto assets themselves are not regulated.”
Meanwhile, the security tokens are the “only FCA-regulated crypto asset,” as mentioned in the U.K. ‘s updated “Factsheet: cryptoassets technical.” However, this sheet was updated earlier this month.
The Fact Sheet further states that if the companies are FCA-registered then it is clear that the company follows “a level of AML regulation acceptable to the FCA.” Additionally, the companies “conduct proper customer due diligence and also checks before onboarding clients.”
Earlier this year, the U.K. Advertising Standards Agency (ASA) also said that all crypto related firms that wrongly market cryptocurrencies to U.K. consumers and its out of country consumers, can face prison time for violating norms. By following the rules, crypto companies in the country can see its further development in the country.
Recently, the U.K. Tax Authority has proposed changes to the treatment of decentralized finance (DeFi) lending and staking. As per the proposed legislative changes, “the crypto used in the DefI transactions would not be treated as a disposal for the purposes of tax, that usually trigger a Capital Gains Tax (CGT) event.”
However, as per the consultation, “a transaction must fulfill certain criteria to be considered a DeFi transaction,” as Cointelegraph reported. Notably, the proposed regulatory changes look to simplify over DeFi returns that how they are taxed, while reducing the administrative burden for taxpayers.
The CEO at Ripple, Brad Garlinghouse, has recently appreciated the U.K. for its “new regulatory frameworks and regimes for crypto activities,” along with the EU and UAE. He also said that the U.S. may be stepping back but he would concentrate on the positive sides.
While sharing about the Q1 2023 XRP Markets Report, Garlinghouse wrote about the efforts of different countries related to the crypto industry.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
