UK Strikes Positive Tone Over Crypto in New Plans

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  • The UK has struck a positive tone over cryptocurrencies in its latest Economic Crime Plan
  • The country is rolling out the red carpet to crypto firms at a time when the U.S. is kicking them to the curb
  • The new plans include greater monitoring of unregistered/non-UK transactions and working with foreign financial crime outfits

The UK has struck an upbeat tone over the future of cryptocurrencies in the region, right at a time when its cousin across the pond is doing all it can to ban it. In its latest Economic Crime Plan, published yesterday, the British government maintained that its ambition is to “make the UK an attractive destination for cryptoassets and cryptoasset innovation in the world”, with new regulations ensuring that criminal activity is minimized and that the space can flourish in what could turn out to be its new home.

UK Still Rolling Out the Red Carpet

The UK has been talking up the potential of becoming a crypto hub for almost a year, and despite multiple leadership changes, and the abandonment of its Royal Mint NFT, these plans still seem to be forging ahead. The new Economic Crime plan has crypto playing a large part, with the report talking up the benefits of cryptocurrencies and stating that “the vast majority of cryptoasset transfers are conducted for valid purposes.” It is for these various reasons that the country wants to provide a “staged and proportionate approach to regulation (which) recognises that, challenging as it is, effective cryptoasset regulation benefits everyone, including consumers and firms.”

This is, of course, a vastly different tone to the one taken by the likes of the U.S., which is doing its best to outlaw the sector, an approach it famously took with the War on Drugs in the 1980s, which looks to be about as effective as a War on Crypto would be, potentially driving it back into the shadows.

Travel Rule and Friends Coming to Town

The Economic Crime report states that activities that are criminal in nature will be more easily rooted out, with more oversight on transactions from non-UK/unregistered entities that come into the country. This will be helped by the implementation of the Travel Rule and the passing of the Economic Crime and Corporate Transparency Bill, both of which it hopes to have in place by the end of this year.