Crypto

We want to make Britain a crypto hub but with protections for investors, says UK digital minister

Summary:

  • The UK is looking to transform Britain into a crypto hub.
  • However, the UK’s digital minister has issued caution as he wants to have adequate protections for investors.
  • The UK also wants to create measures to ensure that cryptocurrencies are not used for money laundering or to circumvent global sanctions.

UK Digital Minister Chris Philp has reiterated plans to transform Britain into a crypto hub. At the same time, he warned about how to do it, pointing to the need for measures that protect investors and prevent digital assets from being used in money laundering and circumventing global sanctions.

He said:

We intend for the UK and London to be crypto hubs.

But of course we have to do it in a way that protects the public and, in particular, pays attention to issues related to, for example, money laundering, and making sure that cryptocurrencies are not used as a way to circumvent things like penalties.

Minister Philp’s comments complement those made by the UK Treasury in April when it announced plans to turn the region into a global crypto hub. Ultimately, the move will increase the UK’s visibility as a financial hub despite the completion of Brexit.

At the same time, regulators from the UK, US, and European Union are proposing potential crypto-based legislation aimed at bringing clarity to the entire industry. Minster Philp expressed optimism that the UK Treasury and its regulators will reach an agreement soon. He said:

The Treasury is working closely with the Bank of England, the Financial Conduct Authority and the Prudential Regulation Authority to make sure the balance is struck in the right way.

CZ and Binance had debunked the theory that Crypto is the best option for criminals and money launderers.

Returning to Minister Philp’s concerns about the use of crypto for money laundering and sanctions evasion, CZ and the Binance team noted that the public nature of blockchain transactions made digital assets a poor choice for security. criminal activity. They explained:

Unlike cash, which is almost impossible to trace, Blockchain has proven to be one of the most powerful tools for law enforcement.

The public and immutable nature of the blockchain makes cryptocurrencies a poor choice for money laundering because it allows law enforcement to discover and track money laundering much more easily than cash transactions.

Cash still tops the list as the preferred medium for criminals.

The Binance team also noted that of all crypto transactions in 2021, 0.15% were associated with some form of illegal activity. By comparison, ‘2% to 5% of cash transactions, about $800 billion to $2 trillion in current US dollars, were associated with some form of illicit activity’ within the same year.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button