UK could roll out crypto regulation within a year, says senior minister

Key takeaways

• Andrew Griffith has estimated that the UK could roll out its crypto regulation within a year.

• He pointed out that the UK is working hard to become a crypto hub, promoting innovation while ensuring progressive regulation.

• Coinbase’s CEO recently revealed that the crypto exchange could relocate from the US due to regulatory uncertainties.

UK’s crypto regulation could be out soon

Andrew Griffith, the economic secretary to the U.K. Treasury, told CNBC in an interview earlier this week that the United Kingdom could roll out digital asset regulation within 12 months. 

According to Griffith, the UK wants to take advantage of the benefits that blockchain technology can bring to the private sector and the economy. The senior minister added that the long-term vision is to enable firms to make the most of the opportunities from crypto assets while ensuring sound regulation. 

He pointed out that the UK government is well-positioned to regulate the crypto ecosystem in a proportionate manner. The UK’s exit from the European Union allows it to look at crypto regulation independently of the broader Europe. He said;

“I think over the next 12 or so months is the window. We’ve got this great asset in the U.K., we’ve got control back of a rule book — not something the U.K. has had for decades — so we’ve got the ability to move in an agile and proportionate way.”

The senior minister added that the United Kingdom is currently in a growth mindset as seeks to maximise the economic efforts led by tech innovation in the private sector.

Crypto regulatory framework to consist of new and existing rules

According to Griffith, the cryptocurrency regulatory framework would be a combination of existing financial asset laws and new crypto-specific rules. He stated that;

“Wherever possible, we want to see the same asset regulated in the same way, but there are some additional opportunities in the crypto asset or distributed ledger space, and we want to take advantage of that.”

He revealed that the regulation of stablecoins is included in the financial services bill, and it is coming even sooner than the broader crypto regulatory framework. 

When asked about the UK’s efforts regarding a central bank digital currency (CBDC), Griffith said it would take time before it is launched. He said

“If you’re going to have a sovereign digital currency, you’ve got to have the highest level of resilience and infrastructure, so that’s not going to happen overnight.”

This latest cryptocurrency news doesn’t come as a surprise, as the UK is one of the leading global financial hubs. 

Earlier this week, Coinbase’s CEO Brian Armstrong spoke at the Fintech Week in London, revealing that the crypto exchange could relocate from the United States due to regulatory uncertainties.