The UK to Embrace Bespoke Approach to Crypto Regulation, Says APPG Chair
The chair of the UK all-party parliamentary group (APPG) on crypto and digital assets, Dr. Lisa Cameron MP, has stated that the UK will not be copying the European Union’s Markets in Crypto Assets (MiCA) legislation. Instead, the country will adopt a bespoke approach to crypto regulation in order to maintain competitiveness.
According to Cameron, the APPG is currently studying international best practices in crypto legislation and has engaged with regulators in Zug, Paris, Brussels, Singapore, and Dubai. The goal is to draw inspiration from overseas regulators while creating a regulatory framework that fits the UK market.
Cameron emphasized the need for interoperability and global standards while acknowledging that different jurisdictions will have their own regulatory approaches.
What is MiCA?
Markets in Crypto Assets (MiCA) is a set of regulations introduced by the European Union to govern cryptocurrencies, stablecoins, and other digital assets. Under MiCA, companies classified as “crypto asset service providers” (CASP) must produce a white paper disclosing information about the issuer, capital usage, underlying technology, and asset rights or obligations.
Passed in April 2023, MiCA has been praised as comprehensive regulation for crypto assets. Dr. Cameron expressed support for MiCA, highlighting its benefits for consumer protection and investment. She noted that clarity provided by MiCA has attracted investment to the EU.
Hot Take: The UK’s Unique Approach to Crypto Regulation
The UK’s decision not to copy the EU’s MiCA legislation demonstrates its commitment to developing its own competitive edge in crypto regulation. By adopting a bespoke approach and learning from international best practices, the UK aims to create a regulatory framework that suits its market. This strategy acknowledges the importance of interoperability and global standards while recognizing the need for jurisdiction-specific regulations. With its focus on creating a favorable environment for crypto businesses, the UK is poised to attract investment and drive innovation in the sector.
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