There’s no doubt that Brexit has had a massive impact on how Britain will need to conduct business going forward, now being separated from the EU. On the morning of Friday, February 26th, the UK Treasury called upon a new regime to require authorization for the Treasury to circulate cryptocurrencies throughout its market. There appears to be two major reasons for this decision. For one, the significant boom in the cryptocurrency market has been heard around the world, and in order to adapt and appease customers and citizens who are interested in this emerging market, various financial institutions must be willing to make major decisions on how they will treat digital transactions. The second reason is that, as mentioned previously, Brexit has left Britain in quite the predicament moving forward with the fintech industry, and encouraging crypto usage has the ability to catalyze much more growth in that industry.
As of recently, it appears after closer inspection that the UK’s crown jewel of fintech is the potential to become the world’s epicenter of buying, trading, selling, and transacting in various cryptocurrencies. However, since this market is already massive and has potential to grow even more tremendously, it’s no surprise that the UK isn’t the only nation fighting for that number one spot. In order to secure its spot, the UK must act quickly in issuing cryptos through the central bank to get as much of a jump start as they can. They should be cautious in how they proceed though, because although they most likely want to get cryptos circulating as quickly as possible, ensuring that the market is secure and safe for all investors is more important. While discussing how the UK plans to proceed, the need to remain “flexible” has been established, as there is no telling exactly how this move will go and there may be challenges they need to be willing to adapt to.
To gauge whether this decision was favored by the majority, the UK Treasury collected feedback from current shareholders about how to properly regulate this market and adapt to cryptocurrencies in mass circulation. The UK Treasury will be collecting feedback until March 21st, and then must thoroughly review the results, so it will still be a while until we receive final word on the matter. Up to this point, the UK has shown it is approaching this market with caution as they banned derivative sales as well as exchange-traded notes on January 6th of this year