Cryptocurrency has been more and more widely used by many, and it is slowly being accepted for public access. Many cities are priming their economies for when the time comes and crypto becomes a regular currency, and London is at the top of the game.
London is Ready for Cryptocurrency
London has already taken a step in the right direction with its plans to regulate cryptocurrency. Looking at the eight key indicators, the city is at the top of the list of the most crypto-ready cities for businesses and start-ups in the world.
It surpassed progressive cities like New York City and Dubai, as well as the former top crypto-ready city, Hong Kong, which has fallen to seventh place. Other cities like Singapore and Los Angeles have placed fourth and fifth, respectively.
This shows that the vision of the United Kingdom's Prime Minister Rishi Sunak, is falling into place. He aims to make sure that the UK financial services industry is always "at the forefront of technology and innovation," as mentioned in Coin Telegraph.
In the study, there are factors that are considered including events, jobs, and companies related to cryptocurrency, as well as crypto ATMs. There's also the consideration for quality of life, and research and development spending.
Regulation of Crypto in the UK
Since doesn't appear to be disappearing from the UK any time soon, there are already plans in place to regulate the industry. Since more crypto-related businesses will be emerging, the UK government is trying to avoid an incident similar to what happened with FTX.
Economic Secretary to the Treasury Andrew Griffith expressed that they must remain steadfast in their commitment to the economy and welcome technological change and innovation. Although, they must also protect consumers who are adopting the technology.
The fall of FTX was a big wake-up call to governments and how things can go awry in the crypto industry. With that in mind, the EU and the US made proposals to improve consumer protections in transactions or anything regarding cryptocurrency.
The proposals will enforce tougher transparency requirements with the inner goings of a cryptocurrency exchange. This is to make sure that they publish important disclosure documents and provide clear admission requirements for digital token trading, according to CNBC.
It will be a slow process as regulation will take time. Reports say that it may take years before Parliament even approves the measures. Although, the Financial Services and Markets Bill, which will turn crypto assets into regulated products is already on its way through Parliament.
Julian Sawyer, CEO of crypto custody services firm Zodia Custody, said that having a regulatory roadmap or direction of travel will be very useful for the UK in regards to being a crypto hub. He added that it was important to ensure general alignment between global markets.
The UK Prime Minister will be consulting on plans to provide a new set of rules specifically for crypto companies. The consultation will be closed by April 30th of 2023, wherein more detailed rules will be made.
