In the wake of Brexit, and under the premiership of Boris Johnson, the UK has increased interest in cryptocurrency and blockchain as a way to resolve possible negative financial outcomes from the deal with the EU. More and more, the UK has been regulating and monitoring cryptocurrency usage and exchange. Most crypto-friendly countries have adopted similar policies to make the cryptocurrency experience safer, more stable, and enjoyable. Recently the UK has adopted new regulations around cryptocurrency, reports Calvin Ayre.
UK cryptocurrency reforms
The UK’s financial regulator, the Financial Conduct Authority (FCA), has in recent years staunchly advocated for digital assets to receive the same acumen as fiat currency. This would make cryptocurrency an equally eligible currency parallel to the official pound sterling.
The new reforms empower the FCA to monitor cryptocurrency more in order to reduce money laundering and other illicit activities. The FCA will oblige UK crypto businesses to submit anti-money-laundering reports, amongst other things. Calvin Ayre notes that a possible reason for these reforms is so regulating authorities have access to more data on cryptocurrency schemes in the country. This will give them better insight into how the industry is run in the country and provide them with indices of reforms to be made or possibly repealed.
Cryptocurrency and Brexit
Earlier this year, the UK officially left the EU in the process known as Brexit. Analysts and speculators have reported that the country should expect an economic downturn due to decreased business with continental Europe. However, these predicted aftereffects have not yet occurred.