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Regulation of the cryptocurrency market in the UK

11/14/2018
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Until now, the British government can not determine their attitude to digital coins. Bitcoin does not fall under the regulation here. What is cryptocurrency UK law can not say. The explanations of the authorities mean that it is not a product or means of payment.

British attitude to cryptocurrencies

No wonder that in the world London is considered one of the most conservative cities in relation to finance. This is evident from the way the blockchain refers here. In October 2018, the report of the cryptocurrency commission was published. It includes representatives of the Financial Supervision Authority, the Central Bank of England and the Treasury. The report said that digital assets have a positive impact on a country's economy and do not carry significant criminal risks.

In this case, the most important recommendation was the development of a methodological guide for taxpayers. Nothing was said about the legal regulation or the introduction of new laws. It is noteworthy that the next meeting of this group will take place in six months. That is, buying cryptocurrency UK law calls the right of every citizen of the country. It demands to pay income tax, and no longer regulates this industry.

Is it good or bad? Judging by the fact that the blockchain technology in the country and start-ups are developing very dynamically, this policy of the authorities has a beneficial effect. The largest startup is associated with the name of Pavel Durov, now living in London. He managed to collect on the ICO telegram more than a half billion pounds.

The situation in other countries

With rare exceptions, authorities in other regions hold a similar position. The US cryptocurrency law in congress has not yet been adopted; the European Union plans only to develop a set of rules and regulations in 2019. Australia, Sweden, Finland and other states are also looking for the right wording.

But Japan completely legalized digital coins, which allowed it to become one of the leaders of trade. An interesting situation in China. Here, companies are strictly forbidden to carry out the initial placement of tokens and accept payments in cryptocurrencies. But individuals have the maximum freedom of choice, which leads to legal incidents.

Probably the strictest legislation in the blockchain field belongs to India. It imposed a categorical ban on the blockchain, up to criminal liability. At the same time, the local government encourages research in this area.

As can be seen from the above, there is no common understanding of the market for digital financial assets and blockchain in the world. However, it should be recognized that the governments found them useful for development. The problem lies in the principle of anonymity and independent issue, which calls into question the right of individuals and organizations to issue settlement funds - cash and non-cash.

What should the British expect

Jeff Kaufman, head of law firm Reynolds Porter Chamberlain, is sure that within two years a package of laws regulating the market of cryptocurrencies will be adopted in the UK. The expert believes that currently the problem is the complete lack of accumulated practice in this direction.

The government is in no hurry to make a decision, because it is not yet sure about the viability of cryptocurrency. As soon as they prove their right to exist, the problem will be solved quickly enough.

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