The United Kingdom Will Regulate Decentralized Finances
The United Kingdom’s watchdogs are focusing their attention on the cryptocurrency sector and decentralised financial systems.
The United Kingdom is attempting to regulate cryptocurrencies and the DeFi business in general. Regulators have also considered excluding references to blockchain technology from the definition of crypto assets, but have not specified how, according to Walter Bloomberg.
Along with crypto assets, decentralised finances are regulated, although DeFi assets will be evaluated on a “case-by-case” basis rather than under a unified regulatory framework.
The primary reason for the new legislation is a lack of transparency and deceptive advertising, which puts consumers who use blockchain-related services and apps at danger. Consumer dangers are also evident in the cryptocurrency market, according to the notice.
Additionally, it is unclear what authorities mean when they say they are deleting the reference to blockchain from the definition of cryptocurrency assets, given the technologies’ inseparable nature.
Previously, the United Kingdom’s connection with crypto assets and blockchain technology was kept under wraps, despite the fact that some companies, such as the Chai Ada coffee shop in West London, accepted bitcoins as payment.