- Ripple urges UK government to accelerate clear crypto regulations or risk losing edge
- UK potential high, but EU, Singapore, Hong Kong advance regulations faster, says Ripple
- FCA rules coming but full implementation delayed until 2026, raising concerns
Ripple is urging the United Kingdom to expedite the establishment of clear and comprehensive cryptocurrency regulations with the aim of fully harnessing the nation’s fintech potential.
The company argues the UK’s current pace hinders the digital asset sector and could cause it to lag behind faster-moving global financial centers.
UK’s Potential vs. Competitors’ Pace
With long-awaited rules for crypto assets and stablecoins anticipated in the coming months, Ripple said that the UK is at its most important moment when it comes to the digital assets industry. While acknowledging the UK has the components to be a global digital asset leader – including strong financial services, foreign exchange, capital markets, and professional services sectors – Ripple points out that other jurisdictions are moving more rapidly.
Neighboring jurisdictions like the European Union, as well as the more distant ones such as Singapore and Hong Kong, are advancing more rapidly with their crypto asset regulations, increasing pressure on the UK to act swiftly.
It’s likely the reason Ripple is doing this is that it encountered reluctance from UK banks to engage with its services. In contrast, the firm had much better success in jurisdictions with well-defined regulations.
UK Regulations
At the beginning of this month, a coalition of six British digital economy trade bodies appealed to Prime Minister Keir Starmer’s government to appoint a dedicated crypto envoy and develop a national blockchain strategy.
They warned the UK risks falling behind the US, UAE, and Singapore without a unified approach.
FCA Readies Stricter Rules, Full Rollout by 2026
In addition, the UK’s Financial Conduct Authority (FCA) is set to introduce stringent new regulations to align UK crypto businesses with traditional finance. These forthcoming rules will cover areas such as capital requirements, insider trading, market abuse, order handling, execution, custody, liquidity, and risk management. This is the FCA’s way of trying to make a safe, competitive, and sustainable crypto sector in the UK. The full implementation is expected by 2026.
Will the UK lag too much behind by the time this sets in is yet to be seen, but its response (or lack thereof) will no doubt shape the future of its digital assets industry.
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