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UK Parliament Recognizes Crypto, NFTs as Legal Property Asset

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In а pivotаl dеvеlopmеnt, thе UK govеrnmеnt hаs tаkеn а significаnt stеp towаrds lеgitimizing cryptocurrеnciеs, NFTs, аnd tokеnizеd аssеts by introducing а nеw bill in Pаrliаmеnt. Thе bill, аnnouncеd on Sеptеmbеr 11, sееks to rеdеfinе thе lеgаl stаtus of thеsе digitаl аssеts, providing much-nееdеd clаrity аnd protеction for invеstors аnd thе broаdеr crypto mаrkеt.

Thе Propеrty Bill mаrks а wаtеrshеd momеnt in thе UK’s lеgаl frаmеwork. By officiаlly rеcognizing digitаl holdings, including cаrbon crеdits, аs pеrsonаl propеrty undеr British lаw, thе govеrnmеnt аims to аddrеss thе longstаnding аmbiguity surrounding thе trеаtmеnt of thеsе аssеts. This lеgаl clаrity is еxpеctеd to strеngthеn invеstor confidеncе, protеct digitаl аssеt ownеrs from potеntiаl disputеs, аnd position thе UK аs а globаl lеаdеr in thе еmеrging crypto еconomy.

Prior to thе introduction of this bill, thе lаck of clеаr lеgаl guidеlinеs for digitаl аssеts lеft ownеrs vulnеrаblе to uncеrtаintiеs аnd lеgаl chаllеngеs. Thе nеw lеgislаtion аddrеssеs thеsе concеrns by providing а robust lеgаl frаmеwork thаt protеcts individuаls аnd businеssеs from frаud аnd scаms whilе еnаbling courts to nаvigаtе cаsеs involving contеstеd digitаl holdings.

UK Bill Boosts Crypto Property Status

Justicе Ministеr Hеidi Alеxаndеr еmphаsizеd thе importаncе of this lеgislаtivе аdvаncеmеnt, highlighting thе rolе of thе UK’s lеgаl sеrvicеs in driving еconomic growth аnd mаintаining thе nаtion’s position аs а globаl lеgаl powеrhousе. By аdаpting to thе еvolving tеchnologicаl lаndscаpе, thе bill is еxpеctеd to strеngthеn thе UK’s аttrаctivеnеss аs а hub for crypto аssеts аnd strеаmlinе complеx propеrty cаsеs, fostеring clаrity аnd cеrtаinty in lеgаl procееdings.

Thе UK’s dеcision to rеcognizе digitаl аssеts lеgаlly is а significаnt milеstonе thаt could hаvе fаr-rеаching implicаtions for thе globаl crypto mаrkеt. As onе of thе pionееring nаtions in this аrеа, thе UK is positioning itsеlf to аttrаct morе businеss аnd invеstmеnt into its lеgаl sеrvicеs industry. This sеctor, which аlrеаdy plаys а significаnt rolе in thе еconomy by contributing £34 billion еаch yеаr, stаnds to bеnеfit grеаtly from this lеgislаtivе shift.

Furthеrmorе, this nеw lеgаl frаmеwork is sеt to еnhаncе thе UK’s аppеаl in intеrnаtionаl lеgаl аffаirs. English lаw, which currеntly ovеrsееs аround £250 billion worth of globаl mеrgеrs аnd аcquisitions аnd hаndlеs 40% of worldwidе corporаtе аrbitrаtions, will likеly sее аn incrеаsеd rolе duе to this dеvеlopmеnt.

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Bitcoin Surges: Google Searches Explode 826% in the UK

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In the world of cryptocurrency, Bitcoin is once again taking the spotlight. Following a significant rally in the price of BTC, Google searches for “buy Bitcoin” have surged worldwide, with the United Kingdom leading the pack with a staggering 826% increase in search volume in just one week. The rapid surge in these searches, as revealed by Cryptogambling.tv, underscores the growing interest and the potential impact of traditional financial institutions’ involvement in the digital asset space.

The enthusiasm is not limited to the UK; it has spread globally. In the United States, the search query “should I buy Bitcoin now?” witnessed a remarkable 250% increase, while more specialized searches, such as “can I buy Bitcoin on Fidelity?”, surged by over 3,100% in the same period. Furthermore, the search term “Is it a good time to buy Bitcoin?” saw a 110% gain worldwide, reflecting the heightened curiosity and optimism surrounding the flagship cryptocurrency.

Bitcoin’s Market Momentum

A significant factor is the recent and dramatic increase in BTC’s price, which briefly crossed the $35,000 mark on October 24. This marked the first time since May 2022 that the digital currency reached such heights. But it’s not just the price that’s sparking excitement; the pending approval of BlackRock’s Bitcoin exchange-traded fund (ETF) is also a crucial catalyst.

Source: X

The potential approval of BlackRock’s ETF has generated significant buzz among investors and analysts alike. It is widely believed that if approved, it will unlock a new wave of institutional investments. Senior ETF analysts Eric Balchunas and James Seyffart have estimated the approval likelihood at a compelling 90% by January 10, 2024.

The ripple effect of this anticipation is visible in the price charts. As of the time of writing, BTC has surged more than 27% in just two weeks, according to TradingView data. This rally is a testament to the resurgent interest in the world’s largest cryptocurrency and the belief that it is well on its way to becoming a mainstream investment choice, backed by traditional financial institutions.

In conclusion, the global spike in “buy Bitcoin” searches reflects the renewed interest in cryptocurrency, driven by a powerful combination of rising prices and the prospect of institutional investments. As the digital asset space continues to evolve, Bitcoin’s role in the global financial landscape appears to be cementing itself, and the world is watching closely.

Bybit’s Farewell To The UK As FCA Brings New Crypto Regulations

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Bybit, a prominent player in the world of cryptocurrency exchanges, has made a significant decision following extensive deliberations. In response to forthcoming marketing regulations set to be enforced by the UK Financial Conduct Authority [FCA] on October 8, the exchange has chosen to withdraw from the UK market. This strategic move reflects the evolving landscape of crypto regulation and its impact on market participants.

In a press release, Bybit officially announced that it will cease accepting new account opening applications from both United Kingdom residents and nationals as of October 1, 2023, at 8 a.m. UTC. This decision marks a proactive response to impending regulatory changes and sets the stage for a transition period for existing users.

Bybit
Bybit's Farewell To The UK As FCA Brings New Crypto Regulations 3

For Bybit’s current user base in the UK, a crucial deadline looms on the horizon. By October 8, 2023, at 8 a.m. UTC, existing users must initiate the closure of their accounts and withdraw their funds. Beyond this point, UK customers will find themselves unable to make new deposits, establish fresh contracts, or augment their existing positions across all products and services.

The platform emphasizes the importance of timely action for affected UK customers. Until January 8, 2024, at 8 a.m. UTC, users are strongly encouraged to proactively manage and wind down their positions. After this specified deadline, any remaining open positions will face liquidation, with the resultant funds made available for withdrawal.

Bybit’s withdrawal from the UK market follows the concerns of its co-founder and CEO, Ben Zhou, who foresaw the drastic move in light of these impending regulations. Zhou also highlighted that Bybit also bowed down from the French market due to regulatory pressures. As the top exec mentioned in a previous statement, he recognized the trend of increasing regulatory scrutiny, anticipating the need to retreat from multiple countries.

Bybit’s Exit Signal Shift In UK’s Crypto Regulation

The FCA, in its effort to introduce “tougher new rules,” has outlined a series of changes, including a mandatory 24-hour cooling-off period and the prohibition of incentives like ‘refer a friend’ bonuses. FCA’s announcement explicitly warns against any continued promotion of crypto assets to UK customers beyond the October deadline without compliance with the new regulations, which could potentially result in criminal charges, including the possibility of an unlimited fine and/or imprisonment for up to 2 years.

While the duration of Bybit’s suspension from the UK market remains uncertain, the exchange has indicated that this move allows the company to redirect its efforts and resources toward aligning with the regulatory framework established by UK authorities.

Crypto Asset Freeze Enhancement Act: Protecting UK Financial Ecosystem

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In the realm of cryptocurrencies, the United Kingdom has unveiled a new legislative proposal called the Economic Crime and Corporate Transparency Bill, aimed at providing local authorities with the capability to accelerate the process of freezing digital asset holdings. If this bill successfully passes later in the year, it could become law. According to experts, the bill is designed to prevent assets associated with criminal activities from being transferred prior to their seizure.

The bill, introduced in September 2022, has progressed to its final stages in Parliament as of early July. While the UK has already seized cryptocurrency assets valued in millions linked to criminal activities, this new legislation is expected to significantly accelerate the asset freezing process. In numerous instances, individuals involved in illicit activities have managed to move their ill-gotten gains overseas before authorities could seize them. The bill is specifically designed to address this issue.

Louise Abbott, a partner at Keystone, expressed, “This novel legislation, which empowers law enforcement to reclaim cryptocurrency assets in this manner, will serve as a potent tool, and it is anticipated that we will observe a substantial rise in the recovery of digital assets.”

The UK’s Crypto Crime Bill: An Examination of its Inherent Components

Presently, within the United Kingdom, the seizure of cryptocurrency assets connected to criminal activities is contingent upon authorities making an arrest or securing a conviction. Experts argue that this condition affords criminals the opportunity to transfer their assets before coming under official scrutiny. The new bill seeks to eliminate the necessity of an arrest or conviction to halt the movement of such assets. Nevertheless, it’s important to note that, from a technical standpoint, the actual confiscation of these assets will still require an arrest or a conviction in a court of law. However, the bill does introduce the possibility of asset confiscation through either court proceedings or civil forfeiture powers.

According to Phil Ariss, who serves as the director of U.K. public sector relations at TRM Labs and formerly held the position of head of crypto at the UK National Police Chiefs’ Council cybercrime unit (currently on sabbatical leave from the police force), this provision will likely come into play in cases where assets are identified, clear connections to criminal activities can be established, but it’s improbable that the subject of the investigation will face legal consequences in the United Kingdom.

Isabella Chase, a senior policy adviser at TRM Labs, has disclosed that the United Kingdom is planning to allocate $124 million for combating economic crimes, representing a 50% increase compared to the expenditure in 2020. This allocation might be a response to calls from authorities seeking additional funding to address cryptocurrency-related criminal activities.

Yet Another Cryptocurrency Initiative By UK’s National Crime Agency

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The United Kingdom’s next prime minister is Rishi Sunak. Sunak supports bitcoin and wants to turn the UK into a major center for it. In the midst of this, UK MPs have decided to accept cryptocurrencies as regulated goods and financial instruments.

Recently, the UK’s HM Revenue and Customs [HMRC] Department published a series of laws to define “designated crypto assets.” The Investment Manager Exemption is applicable to transactions involving these assets filed starting with the tax year 2022–2023 in the UK. On January 1st, 2023, the same was supposed to take effect.

New Cryptocurrency Unit Created By Crime Agency

After a year in which $3 billion in cryptocurrency was stolen through hacks worldwide, the UK’s National Crime Agency is hiring a team of law enforcement officials to look into cryptocurrency crimes.

According to a job posting on the government website, originally seen by Financial News, investigators “shall be dedicated to a proactive cryptocurrency remit with the relevant tools and capacities to target UK-based suspects” as members of the national cybercrime section “crypto cell.”

The Financial Conduct Authority discovered that between March 2021 and April 2022, financial fraud alerts in the UK were most prevalent in the cryptocurrency sector. During that time, the agency opened 432 cases to investigate schemes involving cryptocurrencies.

According to an annual enforcement review released by the Financial Conduct Authority, there were 8,568 alleged crypto scams reported to the organization between April 1, 2021, and March 31, 2022. That represents a roughly 36% increase from the same period the previous year. This number tops the board and is more than twice as high as the second-place fraud category of pension transfer to a new scheme.

The FCA’s “ScamSmart” campaign, which also contains a warning to consumers about the dangers of investing in cryptocurrencies, includes the data release. In its annual public review meeting earlier in October, the FCA reaffirmed the project’s significance and warned cryptocurrency investors that they may “lose all their money.”

Cryptocurrency Leash Tightening In UK? Here’s What Ashley Alder Has To Say

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Governments from all over the world are taking the initiative to regulate the cryptocurrency industry. Undoubtedly, the market has become exceedingly unstable as a result of the consecutive failures of crypto businesses this year. Regulators have voluntarily intervened as a result of clients losing billions. For instance, Australia’s crypto rules will probably get stricter in 2023.

Now, it appears that the UK may do the same. In a recent Financial Times article, Ashley Alder, the incoming chair of the Financial Conduct Authority, noted that when the agency obtains expanded regulatory authority over the industry, crypto firms intending to establish enterprises in the UK will face an uphill battle.

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Ashley Ian Alder, Chief Executive Officer of the Securities and Futures Commission

He stated,

“I think it [crypto] should be regulated further.”

Money Laundering Easier With Cryptocurrency Firms

Alder noted that in his opinion, cryptocurrency platforms were “deliberately elusive,” encouraged money laundering on a large scale, and produced “massively unfavorable risk” while speaking at a cross-party Treasury Select Committee.

Alder, the current Chief Executive of the Securities & Futures Commission in Hong Kong, further explained,

“Our experience to date of [crypto] platforms, whether FTX or others, is that they are deliberately evasive, they are a method by which money laundering happens in size.”

The way businesses in the sector “package a whole set of activities which are generally isolated… gives rise to substantially unfavorable risk,” he continued, including the possibility of conflicts of interest and improper asset management.

The FCA has struggled with its current burden, on the other hand. It is currently in the middle of a transformation program. MPs questioned Alder on why only a third of people trusted the FCA’s leadership. Alder responded,

“You could only hope that would improve.”

The new Chair also admitted that there were “perennial doubts about operational efficiency” and a view that the FCA had not “secured appropriate protection for consumers.” Alder declared that he intended to relocate to the UK in January. Notably, the following month, he will take over as FCA Chair.

The UK has stated that it will extend tax benefits for investment managers to cover crypto assets, therefore it is important to keep this in mind. The U.K. should function as a major worldwide hub for cryptocurrency, according to Prime Minister Rishi Sunak. The Treasury declared it will expand its current tax relief to the cryptocurrency sector.

The UK will provide tax benefits for investment managers that use cryptocurrency

The FCA, however, chose not to address whether or not its incoming Chair’s opinions differed from those of the administration.

Cryptocurrency Now Recognized As Regulated Financial Instruments And Goods: UK Lawmakers

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The United Kingdom’s newest prime minister, Rishi Sunak, is a huge crypto enthusiast. As Sunak supports cryptocurrency it has been made clear that he wants to turn the UK into a major center for it. In the midst of this, UK Lawmakers have decided to accept cryptocurrencies as regulated goods and financial instruments.

The inclusion of stablecoins in the draft report was approved by the House of Commons as well. The UK’s parliament has decided to publish new stablecoin regulations on Thursday. In a few weeks, the UK government also intends to hold a discussion on cryptocurrency regulations and the digital pound.

Global Cryptocurrency Usage Soars

The use of cryptocurrencies is expanding globally. The required regulations are being introduced by governments all around the world. The focus of governments is likewise shifting to stablecoins. This is because they are less volatile and pegged to either the value of the US dollar or the pound.

Recently appointed Economic Secretary to the Treasury Andrew Griffith claimed that specific cryptocurrency assets and distributed ledger technologies could bring about seismic shifts in the financial sector. The financial security of the users is also at risk, he added.

Griffith further stated,

“We wish to tentatively seize those opportunities … not fall behind other markets, but also proceeded in a cautious way. The government’s position is to start with those most stable, least volatile coins likely to be used by intermediaries as a settlement currency and then we will go forward and consult from there.”

Griffith further stated that to implement the framework and weigh its risks and benefits, the Treasury will communicate with numerous stakeholders and business leaders. As of right now, the House of Lords must give the regulations its final approval. This is necessary since King Charles III of England holds the ultimate authority.

Griffith also brought up the potential for a digital pound to be issued. In the following weeks, this issuance will also be the subject of consultations between the Treasury and the Bank of England.

The new crypto regulation bill received a unanimous vote of support from the committee’s legislators. It seems as though the House of Lords must currently approve the rules.

UK Lawmakers Begin Probe On The Crypto Sector

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The UK government’s “Crypto and Digital Assets All Party Parliamentary Group” [APPG] has begun an inquiry into the nation’s crypto industry in order to prepare a report and recommendations to share with the government.

As per a press release, the APPG revealed that the probe will focus on issues relating to the crypto and digital assets ecosystem in the country, and will have written findings accepted by Sept. 5, this year.

The group consists of MPs and lords from the main political parties and acts as a forum for policymakers and the UK‘s crypto sector in discussing the industry. 

The group will also take into account the views of crypto operators, regulators, industry experts, and the government on the role of regulation, CBDCs, consumer protection, and economic crime. It also intends to hold several evidence sessions in the upcoming months. 

MP Lisa Cameron, who heads the APPG, stated, “It’s vital that the UK does not take its foot off the gas and that government and regulators keep to their commitments when it comes to crypto and digital assets.”

The country has seen major political changes in recent times, such as the resignation of Treasury Minister John Glen, whose April speech supporting the industry gained a lot of attention from a UK official to date.

UK’s Mixed Signal Is Hampering The Growth Of The Crypto Industry

Glen has been vocal about the need for a regulated framework that will essentially focus on fostering the growth of the sector. However, the same cannot be said for other UK institutions, which have, time and again, raised concerns regarding the safety and viability of crypto-assets.

Bank of England Governor Andrew Bailey, for instance, called criticized the crypto market and called it an “opportunity for the downright criminal.”

It’s precisely this sort of mixed messaging that could hinder the industry’s development.

The crypto market holds roughly a $1 trillion market cap and the flip flop within the political circles could act as a roadblock to the industry’s development.

That said, the U.K. is one of Europe’s leading fintech hubs and is fortunate to be equipped with the infrastructure, investment, and talent to drive the crypto industry. But in order to maintain this position, it needs to take a decisive and unilateral stance on cryptocurrency.

UK Double Down On Stablecoin Regulations Fearing “Knock-On Effects” of Terra’s Collapse

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UK government has outlined amending current rules to mitigate “systemic” risk posed by stablecoins firms and wants to ensure that the dramatic fallout of the Terra project does not seep into the wider financial system.

TerraUSD, a so-called “algorithmic” stablecoin, crashed earlier in May, taking its sister token Luna with it. Since then the entire crypto market is engulfed in panic, erasing hundreds of billions of dollars from it.

Even Tether, the world’s biggest stablecoin, saw its circulating supply plunge from a record $84 billion on May 11, fueling fears of a 2008-style “bank run” with knock-on effects for other financial markets.

That has, in turn, caused concern for regulators, who are worried about the risks posed by stablecoins to the broader financial system. 

It is to be noted that the latest plan is different from previously announced plans to regulate stablecoins under laws governing electronic payments. The government said in a consultation paper setting out its proposals.

“Since the initial commitment to regulate certain types of stablecoins, events in crypto-asset markets have further highlighted the need for appropriate regulation to help mitigate consumer, market integrity, and financial stability risks.”

“The government considers that it is important to ensure existing legal frameworks can be effectively applied to manage the risks posed by the possible failure of systemic DSA [digital settlement asset] firms for the purposes of financial stability.”

UK’s Bank of England Will Be Given More Power

In addition to that, the UK authorities are working to implement additional safeguards to existing legislation around the insolvency of firms operating key financial market infrastructure. Such a provision would take into account the return or transfer of the private keys that protect users’ funds.

The Bank of England would serve as the lead regulator enforcing the rules. A consultation on the proposal is currently in progress and will close on Aug. 2.

Not only in the UK but Regulators around the world are also working towards bringing effective regulatory controls. Recently Chinese state media outlet, the Economic Daily, has signaled that the Chinese government may introduce even tighter regulations on cryptocurrencies and stablecoins due to the collapse of the Terra ecosystem. 

UK Eyes Stablecoin Regulation Amidst Terra Chaos

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The UK Treasury has declared that it is open to stablecoin regulation for payment purposes but that algorithmic stablecoins would be excluded due to their lack of stability. Only stablecoins backed by fiat currencies will be considered. This comment is in line with the queen’s son Prince Charles’ Tuesday speech, which included fiscal issues.

The Government has been clear that certain stablecoins are not suitable for payment purposes as they share characteristics with unbacked crypto assets. We will continue to monitor the wider crypto asset market and stand ready to take further regulatory action if required.

A spokesperson from the Exchequer

The Queen also addressed the growing cost of living that many Britons are facing as a result of the pandemic, with inflation approaching 10% and energy prices rising.

UK government has been cautious with the decision

Chancellor of the Exchequer Rishi Sunak suggested stablecoins and central-bank digital currencies might enhance payment processing networks in a speech on November 9, 2020.

If the UK government changes current electronic money legislation to meet stablecoins, the Financial Conduct Authority will regulate them.

So far, the watchdog has stayed cautious by allowing just a small number of bitcoin businesses to open shop in the UK, forcing other businesses with insufficient AML checks to operate abroad. Last month, the Treasury’s economic secretary remarked, “The UK is open for business and opens for crypto trade.”

“The UK financial services business must always be at the forefront of technology and innovation,” Sunak says. To represent the UK government’s forward-thinking position on the crypto business earlier this year, Sunak commissioned the Royal Mint to create a non-fungible token (NFT) before summer 2022.

The untimely tragedy of the Terra and LUNA algorithmic stablecoins has cast a pall on what was once thought to be a secure haven for cryptocurrency investors.

Senator Pat Toomey of Pennsylvania has called on the federal government to regulate stablecoins in the wake of Terra’s “bank run,” which depleted the company’s liquidity reserves and sent shockwaves across the crypto market with significant selloffs.