While the EU is fine-tuning its MiCA rules across the channel, the UK is working to develop its own crypto legislation. And the least we can say is that it appears to be much more favorable to the growth of this asset class, responding to the wishes of Prime Minister Rishi Sunak, who when he was Chancellor of the Exchequer declared that he would make the country to a “global hub for crypto”. assets”. Thus, since January 1, the United Kingdom applies a tax exemption for foreign investors who acquire cryptos through local investment managers or brokers.
The UK government’s tax agency, HM Revenue and Customs (HMRC) argued that this favorable tax orientation was crucial to attracting foreign capital.
A British pro-crypto policy, but focused on its native companies
It must be remembered that thanks to a Brexit that marked his withdrawal from the European parliamentary scene, The United Kingdom wants to strengthen its rank as a leading financial center by relying on cryptos in particular. An amendment to the Financial Services and Markets Bill that falls within the framework of the existing provisions of Financial Services and Markets Act 2000 regulation of financial activities in the UK, could list them as financial instruments. In this context, one of the first key measures of the UK government will be to legalize the use of stablecoins to create them real means of payment.
Other provisions favorable to the adoption of cryptos are in the cards, though since the FTX debacle, the authorities are showing even more control over the industry’s players. The dreaded Financial Conduct Authority (FCA), Britain’s main regulator, could tighten the screws further and further limit the activity of foreign companies in its territory. Binance can attest to this, after seeking registration with the regulator for years, it still hasn’t gotten it. The leading platform even had to report on its role in the FTX case to the UK Treasury special committee.