Thread by @UtilityTheory

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Navigating #Crypto #Regulation in the UK 🇬🇧💰🔍

A comprehensive summary of the UK House of Commons Treasury Committee report on government's approach to #cryptoassets & how they plan to balance the scales of innovation and risk. (1/16) #ShitcoinShutdown #DLT

2. Shoutout to @MatthewLINY for finding this document that was published May 10 2023. 🤝

In this thread, I am going to summarize some viewpoints of the UK Gov and I will post the document link at the end of the Thread! Lets dig in⏬ #Crypto #DLT #Blockchain

3. The Treasury Committee has called for the UK Gov to step up its efforts in regulating #cryptocurrency, amidst rising concerns about risks to consumers.

They advocate for a pragmatic and balanced approach to regulation, recognising the potential of #DLT in financial services.

4. Understanding the opportunities and risks, the UK government is considering crypto regulations that foster innovation, mitigate risks, and promote the development of central bank digital currencies. The "wild west" nature of the crypto market poses inherent challenges.

5. The potential benefits of #DLT include lower transaction costs, trust in trade, and increased financial inclusion. But these benefits come with volatility risks. They state regulatory safeguards can help address these risks, unlocking the latent potential of #Blockchain.
#XRP

6. The previous decade saw #FinTech's first wave revamp the 'front end' of finance, transforming user interfaces and apps.

Now, emerging tech fueling #Crypto is set to revolutionize the 'back end' of payment systems, capital market infrastructures, transaction processes.👀 #DLT

7. With increasing instances of fraud, scams, and money laundering, concerns are growing about the acceptance of crypto assets.

To combat this, the #UKGov aims to be the 1st in the #G7 to strengthen regulations, and aims to establish itself as a global hub for crypto business.

8. UK's plan includes introducing a regulatory regime for #Stablecoins used for payments (Cough* #USDT) and expanding financial #Regulation to other #CryptoAssets👀#XRP

The goal is to foster innovation while safeguarding financial stability and maintaining market integrity.

9. The #UK Financial Services & Markets Act 2000 will be extended to cover #CryptoAssets. The aim is for the regulatory framework to boost growth, competitiveness, and enhance consumer protection. Delays in such #regulations could impede UK's growth as a fintech hub.

10. Unfortunately, delays in the FCA's processing of applications under its Anti-Money Laundering/Counter-Terrorist Financing regime have led some crypto firms to relocate overseas.

These delays highlight the challenges in keeping pace with the rapidly evolving #Crypto market

11. While #DLT #Assets show promise for transforming cross-border payments and trade finance, #Mastercard asserts that technological innovation alone won't suffice. Overcoming barriers such as fragmented regulations, unharmonized messaging standards, & data flow restrictions is🔑

12. About 10% of #UK adults hold cryptocurrencies, mainly for fun investment. But this "fun" comes with volatility that can lead to significant gains and losses. The government intends to regulate crypto activities, not specific assets, with a focus on unbacked #cryptoassets #DLT

13. The UK All-Party Parliamentary Group on Cryptoassets warns against regulating cryptoassets as financial services. Doing so could inadvertently legitimize speculative assets, potentially exacerbating risks. If unregulated, such activities should be treated as gambling instead.

14. Investing in cryptocurrencies is indeed likened to gambling, especially given the lack of protective measures for vulnerable consumers. This gambling-like nature raises significant concerns about addiction, football sponsorships, and potential data breaches. #UKGov #UK #DLT

15. "Gov should regulate retail trading & investment activity in unbacked #Crypto as gambling due to the significant risks to consumers. At the same time, an effective regulatory framework should be put in place to support potential benefits of #cryptoasset technologies"

16. May 10 2023 - Regulating Crypto Document 📜
Thanks to the researcher @MatthewLINY for finding this! 🤝#G7 #ShitcoinShutdown #Ripple #CBDC #XRP #Tokenization #R3 #Mastercard #DLT #Blockchain #UKGOV #UK #DigitalEconomy
committees.parliament.uk/publications/3…

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