With cryptocurrencies be coming such major players in most finance markets, many countries and companies have started taking not of them. Companies are looking to expand the overall usability of cryptocurrencies by accepting them at their stores or in exchange of their products and services.
However, in the case of countries growing interested in cryptocurrencies, they are doing so to protect their citizens. As more people start getting into cryptocurrencies, many countries have come to understand the risks that come with learning about the overall crypto market.
The best thing about the market is that it is constantly evolving, so this type of regulation is not a bad thing for it. Instead, it can actively bring in many investors who were otherwise having a difficult time trusting the cryptocurrencies.
The UK makes Strides in the Crypto Market
The UK has been making great strides in the crypto community, almost by accident. While Finance Minister Rishi Sunak, now Prime Minister, Under Boris Johnson wanted to make the UK the capital for cryptocurrencies.
While his motions never made it past the floor, the UK did see a surge in DeFi and crypto transactions, with a total amounting to over $200 trillion. It was easily the most amount that users have sent throughout Europe, and it was the sixth most in transactions worldwide.
Furthermore, with Rishi Sunak, former Finance Minister, not becoming PM, the country now has an even better opportunity to become a respected name in the crypto space. As a major crypto supporter, the new PM has a lot to live up to in his promises.
Lawmakers Now Recognize Crypto as Regulated Financial Instruments
Europe as a whole has been very welcoming to cryptocurrencies and has therefore been very active in setting up regulations. Both the EU and Singapore were some of the first countries to even set up dedicated regulations for the crypto industry.
Therefore, the UK now recognizing that cryptocurrencies are regulated financial instruments should not come as a surprise. The UK understands the role that it has to play in the international crypto market, which is why it is setting a precedent for how to properly regulate cryptocurrencies.
While the UK already had a bill that focused on regulating many stablecoins, lawmakers were quick to amend the bill to include various other crypto assets as well.
A Step in the Right Direction for Cryptocurrencies
The best thing about the current provisions is that they make the crypto space much safer to operate in. Furthermore, investors, especially ones coming from more traditional markets, will feel more at ease when investing in an asset that is properly regulated. Over time, proper regulation will soon become the standard.