FameEX Hot Topics | UK May Have Crypto Regulation Within a Year, Says Senior Minister

Andrew Griffith, the economic secretary to the U.K. Treasury, stated in an April 17 CNBC interview that the British government aims to establish sound crypto regulation that would allow companies to take full advantage of the benefits offered by crypto assets in the long run. Griffith expressed confidence that the U.K. is now well-positioned to regulate cryptocurrencies in a "pragmatic" and "proportionate" manner, as the country has regained control of its rule book, which it had not possessed in decades, following its exit from the European Union.

Griffith stated that over the next 12 months is the ideal time to regulate cryptocurrencies in a manner that would enable the country to take advantage of the significant potential in the private sector's technological innovation. He claimed that the crypto regulatory framework would combine existing financial asset laws with new crypto-specific regulations. However, Griffith pointed out that the same assets should be regulated similarly, but additional opportunities exist in the crypto asset or distributed ledger space, and it is necessary to take advantage of them.

Griffith mentioned the example of settlement using fiat-backed cryptocurrencies, which was included in the financial services bill, indicating that it will be implemented before the broader regulatory framework. However, Griffith clarified that the rollout of the U.K.'s proposed central bank digital currency (CBDC), also known as "Britcoin," will take more time to develop and will not be visible within the next year. Furthermore, Griffith emphasized the importance of discussing privacy policies and the technology behind the digital pound to address concerns fully. He stated that it is crucial to ensure the highest level of resilience and infrastructure if a sovereign digital currency is to be established, which cannot occur overnight.

Griffith's statements suggest that the U.K. government recognizes the need to regulate cryptocurrencies to take advantage of their potential benefits while addressing any associated risks. It also demonstrates that the country aims to regulate cryptocurrencies in a balanced and proportionate way, avoiding the possibility of stifling technological innovation in the private sector.

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