The United Kingdom has announced new plans to regulate crypto assets. Chancellor of the Exchequer Rachel Reeves shared the details at a London summit during UK Fintech Week.
The draft law provides clear standards for companies involved in dealing in crypto assets such as Bitcoin and Ethereum. They are designed to safeguard consumers while enabling innovation in the expanding digital finance industry.
The UK government aims to ensure that investing in cryptocurrency is safer for its people. Nearly 12% of UK adults have held cryptocurrency, a significant increase from 4% in 2021 alone. Scams and unregulated companies pose risks to many of them.
Crypto services now face clear UK regulations
The new regulation addresses this by imposing standards akin to those of mainstream finance on crypto firms. Crypto firms offering services will now come under formal regulation.
These should be transparent, serve customers, and make their systems strong and secure. They include, but are not limited to, dealers, exchanges, and agents. They are part of the government’s Plan for Change, designed to promote growth, making the UK a global leader in fintech.
The Chancellor added that Britain is collaborating with America in promoting responsible development of digital assets. The meeting between Reeves and US Treasury Secretary Scott Bessent was aimed at discussion of cooperation.
They discussed establishing a common space for digital securities innovation across both nations. It intends to promote new business concepts while having robust protections in place.
UK pushes progress, ensures protection
The funds consist of equity as well as token warrants, laying the groundwork for a new cryptocurrency issuance. Whereas multiple venture funding firms participated in the round, Polygon Labs embarked on a different route. Instead of making a direct investment, it signed up to get 10% of Miden’s future tokens.
They will be allocated to Polygon token holders currently in existence. Miden appears when most blockchains do not have transactional secrecy. Even pseudonymous ones like Bitcoin have little actual privacy.
Governments and firms have become adept at monitoring individuals, sometimes even profiting from so doing. While aiding law enforcers, such openness isn’t a benefit to users looking for financial secrecy.
