The UK failure to establish clear restrictions on the crypto business, according to a former chancellor, is “shocking.”

The United Kingdom has less than a year to regain its foothold in the cryptocurrency market or risk losing talent and potentially its position as a global financial services leader, as former Chancellor of the Exchequer Philip Hammond warned. In an interview, Hammond said it’s “honestly pretty alarming” that Britain has lagged behind other financial hubs like the European Union in establishing clear regulations for the expanding crypto industry.

The United Kingdom continues to tighten its crypto rules.

As reported earlier, the Financial Conduct Authority issued a proposal to restrict cryptocurrency marketing to experienced investors this month, a day after the U.K. Treasury said it planned to tighten rules on crypto advertising. Other rules remain in the planning stages, and a program to register crypto companies has faced delays. “It’s credible that 2022 is available as a catch-up period,” Hammond said.

Regulators around the world are grappling with the boom in volatile cryptocurrencies.

Hammond further noted that if the U.K. appears “manifestly behind the curve” next year, digital-asset businesses are considering relocating their headquarters to jurisdictions that are further ahead with regulation, such as Switzerland, Monaco, and Germany.

Regulators around the world are tackling the boom in volatile cryptocurrencies, whose dramatic price swings have brought in millions of retail traders, along with institutions trying to harness the underlying blockchain technology to improve how they handle trades. While some crypto boosters see regulation as a threat to the decentralized nature of the asset class, others hope adding protection for users will lead to mainstream adoption.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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