The UK Treasury Looking for Feedback on Its Crypto Approach

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Interest in Bitcoin is sky-high after a record-breaking 2020 in which it hit peaks no one could believe. The leading cryptocurrency on the market became a dominant player in many industries. Casinos love using it now out of a sudden and many governments have shifted their stance on BTC after seeing its performance during the coronavirus pandemic. The UK Treasury has just released a consultation paper which asks for feedback on its approach to cryptos.

The paper asks opinions on how the UK can shape its crypto laws. The country has just recently signed the Brexit deal and is in the process of leaving the European Union. With no EU regulatory frameworks holding it back, it can shape its own Bitcoin laws, and it’s a good thing that it’s asking for the public’s opinion on how to do it.

A Risk to Consumers

The UK is one of several countries interested in a proportionate approach to new crypto asset development. Right now, the focus of the Treasure is on stablecoins. These cryptocurrencies have a stable price thanks to the backing of assets such as the US dollar.

John Glen, M.P., and the Treasury’s economic secretary, admits that the landscape is changing fast. Stablecoins could pave the way for cheaper payments and make it easy for UK residents to store their money. As the Treasury’s research showed, there’s increasing evidence that distributed ledger technology could have fantastic benefits for capital markets and may change the way they operate.

Bitcoin and stablecoins have entered a few new industries in the past few years, including some very successful ones such as Bitcoin gambling. More and more merchants are adding Bitcoin to the list of payments which means that trust among people is increased. While it may not seem like that, governments are keeping their eye on it. The latest paper by the UK Treasury is further proof of it.

The biggest reason why the Treasury is asking for feedback on its approach to cryptos is that it wants to protect UK residents from risks. Since the announce of Facebook’s Libra project, regulators have raised concerns over the effort of stablecoins on monetary sovereignty. In 2019, the UK issued guidance on Bitcoin and stablecoins, asking for opinions on which should and shouldn’t fall under its jurisdictions.

Results Published in Due Course

The results from the latest paper will be published in due course. Responses to the paper are being accepted up until March 21, 2021. After that, the Treasury should serve the results to the government so experts can decide what happens with crypto regulation in the UK post-Brexit.

It’s good to see that such big institutions are trying to get a deeper look into cryptos. While this doesn’t mean automatic Bitcoin approval in the UK, it’s a step in the right direction. Correct responses to the paper could result in nicely shaped laws that will allow Brits to use Bitcoin and stablecoins to the max.

 

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January 13, 2021: • No Comments

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