Final rules for the cryptocurrency industry were recently published by the United Kingdom. The government highlighted plans for the phased introduction of regulation. According to planning, legislation for fiat-backed stablecoins is expected to be introduced in early 2024.
“The government has provided an update on its legislative approach to bringing fiat-backed stablecoins into the UK regulatory perimeter for financial services. This document provides additional details following the UK regulatory approach to cryptoassets, stablecoins and distributed ledger technology in the Financial Markets Consultation Response published in April 2022,” the government stated.
In its statement, the UK government further highlighted: “This update will inform the development of the Financial Conduct Authority and the Bank of England’s approaches to regulating stablecoin issuers and custodians. and systemic payments systems for digital settlement assets and service providers, respectively.”
It is worth noting that, at the beginning of the month, cryptocurrency exchanges Coinbase, OKX and Binance were establishing strategic alliances in the United Kingdom in light of the New Regulations.
Amid a scenario of regulatory changes in the United Kingdom, big names in the cryptocurrency market are seeking to adapt quickly. Bybit, a leading exchange, recently withdrew from the UK market due to new crypto marketing guidelines. However, other industry giants such as Coinbase, OKX and Binance are taking proactive steps to ensure their continued presence in the country.
Coinbase and OKX, for example, are collaborating with Archax, a local company, to secure approval for their financial promotions. Binance, in turn, announced a partnership with Rebuilding Society, a peer-to-peer lending company regulated in the United Kingdom. The latter, despite its modest distribution of £35 million ($42.6 million) in loans since 2013, could be key for Binance to continue operating in the UK.
These strategic partnerships are seen as a direct response to the UK Financial Conduct Authority’s (FCA) new marketing rules. George Morris, partner at law firm Simmons & Simmons, commented on the situation: “When approvers enter into an agreement with an exchange, they take responsibility for promotions, creating a symbiotic relationship.”
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