All the New Updates on UK Crypto Regulations!

UK crypto regulations are here. Big news for people who use or are interested in cryptocurrency in the UK! 

The UK government has made some new rules about crypto. Here are four important changes:

• The government can seize crypto if they get suspicious of illicit activities.

• You can now deal with crypto just like property, just as the law sees your house or car. 

• These changes are going to alter the way in which people in the UK purchase, sell, and use cryptocurrency.

• These changes will, in turn, make crypto safer and more regulated.

These amendments are essential to anybody in the UK. With these, the UK is set to become a crypto hub. If you presently have cryptocurrency or are ooking forward to owning cryptocurrency in the future, this is for you!!

In each case, they modify the legal status of crypto and the rights that you have with your digital money.

Let’s understand these new UK crypto regulations in detail:

1. New Law Gives NCA Power to Seize Crypto

As per the new regulations, the UK government has given the authority to the National Crime Agency. 

Now, if the NCA thinks someone is using cryptocurrency for illegal stuff, they can take it away, freeze it, or keep it. 

They couldn't do this before, which made it hard to stop crypto crimes. With this new law, the NCA can act even before they arrest someone or charge them with a crime. It helps them fight money crimes better. The new law starts working on April 26, 2024.

2. New Regulation Updates for Stablecoins and Staking

Stablecoins and staking; heard of these two? These are currently very popular in the crypto world. 

Stablecoins try to maintain a stable value and are usually related to everyday money. Just like the US dollar!! Staking is when you hold your cryptocurrency to receive extra rewards.

The UK government has some news about these:

• They plan to make new rules for stablecoins and staking.

• These new rules will come in the next six months.

• But right now, they have yet to share what these rules will be.

So, if you use stablecoins or do staking, keep an eye out for more information in the coming months.

3. FCA Takes Action Against Unregulated Crypto Promotions

Illegal crypto companies are a huge problem. Many fake crypto companies have been advertising their services. Do you know this practice has been going on for years? Sadly, it has yet to come of it in terms of proper control.

Until now!!! The Financial Conduct Authority of the UK is taking action:

• On 14 February 2024, the FCA published some figures about their activities.

• In 2023, they removed or modified over 10,000 ads from companies that violated the rules.

• They also issued warnings over nearly 450 crypto companies operating illegally in the UK.

What does this mean? 

The FCA is working hard to protect people from risky and illegal crypto ads. They are removing more and more of these bad ads from the market.

It shows the FCA is serious about keeping UK consumers safe from unregulated crypto risks.

4. Cryptocurrencies as Property Under Law: Consultation Underway

The Law Commission of England and Wales has a new plan. They want to make a new law about digital things like NFTs and cryptocurrencies. The idea is to call these digital items "legal property."

If this happens, the law would treat digital assets more like physical things you own. It could make it more transparent how these digital items fit into the legal system.

They asked the public what they thought about this idea. People had until March 22, 2024, to share their opinions.

Why is it important?

• It could help make future rules about crypto and other digital assets clearer.

• It might lead to more laws about how to use and manage these digital items in the UK.

Final Note!

The UK is changing how it handles cryptocurrency:

• Fighting crime: The government is working harder to stop illegal activities with crypto.

• Protecting people: They want to keep crypto users safe from risks.

• Defining crypto: They're trying to decide how the law should treat digital money and assets.

• Balancing act: The UK wants to allow new ideas in crypto while also keeping the financial system safe.

• Step-by-step approach: They are making these changes carefully, only some at a time.

Overall!!! The UK is trying to make crypto safer for everyone while still allowing it to grow and develop.

If you need any information on crypto tax compliance and advice, reach out to the Crypto Accountants!!