Consumers should be protected by legislation, and victims of cryptocurrency fraud can be compensated. It is also necessary to eliminate the risks of cyber attacks by protecting access to cash for millions of people who rely on these fundsZahavi said
Protecting Consumer Rights and Preventing Fraud
As part of the bill, consumers will be protected by legislation, and victims of cryptocurrency fraud will be compensated. Furthermore, the risks of cyber attacks will be eliminated by securing access to cash for the millions of people who rely on these funds.
Setting Standards and Adoption Roadmap for Stablecoins
The bill will establish standards for the use of stablecoins in payments, as cryptocurrencies are introduced into retail and other business areas. Additionally, the document will include a roadmap for the adoption of stablecoins, which will accelerate the spread of digital assets in the UK.
Registration Requirements for Cryptocurrency Companies
Cryptocurrency companies, issuers of stablecoins, and custodial services will be required to register with the UK Financial Supervision Authority (FCA) to ensure compliance with the standards set forth in the bill.
Investor Protection in Event of Stablecoin Collapse or Crypto Asset Issuer Bankruptcy
In May, the British Ministry of Finance began developing regulations that will allow investors to return funds in the event of the collapse of stablecoins or the bankruptcy of issuers of crypto assets.
Public Consultation on Decentralized Finance (DeFi) Taxation
Recently, the British government opened a public consultation on the taxation of decentralized finance (DeFi). Officials promise to simplify the filing of tax returns for participants in this industry.
The new bill on financial services and markets is a step towards a more innovative and digitalized UK fintech industry. It will provide consumer protection, establish standards, and accelerate the adoption of stablecoins. As the fintech sector continues to grow and evolve, regulations and guidelines are crucial to ensure compliance and stability. The UK's proactive approach to fintech regulation is a promising sign of growth and progress.
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