Great Britain is aiming at regulating cryptocurrency and the DeFi industry as a whole
According to Walter Bloomberg reports, the UK is moving towards regulating crypto and the DeFi industry in general. Regulators have also proposed removing references to blockchain from the definition of cryptocurrency, but they have not clarified how.
Great Britain’s watchdogs are aiming at the cryptocurrency industry and decentralized finances
In addition to crypto-assets, decentralized finance is also covered, but DeFi assets will be considered on a “case-by-case” basis rather than a general regulatory framework.
The main cause of additional regulation is lack of information and misleading advertising, which creates risks for customers who are using blockchain-related services and applications.
BRITAIN SAYS DECENTRALISED FINANCE (DEFI) MAY BE IN SCOPE OF REGULATION, BUT WILL NEED TO BE CONSIDERED ON A CASE BY CASE BASIS
BRITAIN SAYS MISLEADING ADVERTISING AND LACK OF INFORMATION MEANS THERE ARE CONSUMER RISKS PRESENT IN CRYPTO MARKET
— *Walter Bloomberg (@DeItaone) January 18, 2022
According to the announcement, consumer risks are also present in the cryptocurrency market. It is also not entirely clear what regulators mean by removing references to blockchain from the definition of crypto-assets due to the inseparable nature of the technology.
Previously, the UK’s relationship with crypto and blockchain assets was considered confidential, with various businesses accepting crypto for payment such as Chai Ada cafe in West London.
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