By George Ward
The world’s largest crypto exchange, Binance, has lauded the latest move by the United Kingdom to ensure regulatory compliance within the digital asset industry. The United Kingdom is reportedly consulting with industry players to establish guidelines that will provide greater regulation for cryptocurrency.
HM Treasury Releases Report
The United Kingdom’s HM Treasury tweeted a report earlier in the week detailing the upcoming digital financial regulatory framework for the region. The report coincides with Binance’s statement about collaborating with the government to push for appropriate guidelines for the crypto industry.
The UK had proposed a financial services regime for virtual assets, including Bitcoin. The proposed guidelines also highlighted the risks and opportunities of dealing with cryptocurrency.
Meanwhile, the latest report is built on the previous HM Treasury suggestions, which focused on stablecoins regulation and promoting crypto assets in the UK. In a press release, HM Treasury disclosed that this signifies the next phase of the UK’s step-by-step approach to making the region a global leader in digital asset technology and innovation.
Furthermore, HM Treasury believes that with proper regulations, crypto asset service providers can operate with clarity and have a better business framework to manage consumer demands and control risks. It is worth noting that the consultative processes for the upcoming comprehensive crypto law will be closed on April 23.
The consultation from the Treasury aims to lay out the appropriate guidelines for regulating the crypto space with a focus on trading and investment. The government seeks to develop a general framework for crypto service providers, lending platforms, and other critical industry players to check market abuse and price manipulation.
As last year turned out to be a turbulent period for the digital asset space, Andrew Griffith, the UK Economy Secretary to the Treasury, hopes the new proposal will help achieve a clear, timely, and effective engagement with the crypto industry.
Binance Predicts More Crypto Innovation
With the crypto industry still reeling from the FTX debacle in November 2022, investors are beginning to lose trust in the digital asset space. Most users who lost funds to the FTX collapse are reportedly from the United States and the UK.
With the UK government making a move, Binance believes that this move could accelerate the adoption of the proposed law. The HM Treasury explained that the UK has no crypto custody policies.
Hence, the current state of regulatory affairs would spell doom to investors, especially if the custodian files for insolvency protection. However, Binance believes that a solid regulatory space will spur innovation and revive the dwindling trust in the industry.
The exchange stated that trust and innovation are necessary for the crypto ecosystem to push for long-term growth. Despite being banned from operating in the UK by the country’s financial watchdog, Binance’s support of the Treasury’s latest move is a surprise.