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Binance, a higher cryptocurrency exchange rate as a result of trading volumes and the number of clients, welcomed the UK's decision to consult on a framework that will enable better regulation of cryptocurrencies, encourage uptake in the area.
In a tweet on February 1, following the United Kingdom’s HM Treasury sharing a report detailing the future financial services regime for crypto assets on the same day, BINANCE said they are welcoming steps taken by the government.
#Binance has vocally supported the need for effective and appropriate regulation to help with mainstream adoption of digital assets.
We welcome the next steps from the UK Government in making this happen with the @hmtreasury’s publication of plans to regulate crypto activities.
— Binance (@binance) February 1, 2023
The report presents proposals for the financial services regime of the United Kingdom for crypto assets, including bitcoin. It also outlines the risks and opportunities that cryptocurrencies present. The report builds on previous treasury proposals hm, which focused mainly on the role of stabilizers in cryptography and promoting digital assets.
HM The Treasury said the current proposals 'mark the next step in the United Kingdom's progressive approach,' and seek to make the region a leader in technology and innovation around digital assets. Through appropriate regulation, the Treasury believes that suppliers will operate with certainty while better managing risks to consumers and stability.
All advisory processes to be completed by April 23, 2023.
Bitcoin Price on February 1 | Source: BTCUSDT on Binance, TradingViewIt is worth noting that recent developments, including the collapse of FTX, a cryptocurrency exchange, partially advised HM Treasury proposals.
In November 2022, the Bahamas-based ftx filed for bankruptcy protection in the US, bringing with it billions of user funds. Sam Bankman-Fried, the former CEO, is under house arrest after posting a $250 million bond. Her murder case is in progress in New York.
The fact that users, including those in the U.K. and the U.S., have lost money in ftx could speed up the development of custody laws.
In the United Kingdom, the HM Treasury admits that there is “no regime for crypto-asset custody” and industry feedback has picked out different models used to custody digital assets. This regulatory situation, they point out, could hurt investors, particularly if the depositary goes bankrupt.
Binance is of the view that a stable regulatory environment will stimulate innovation and build confidence. Those are the two ingredients that are going to drive the long-term growth of the sector. Thereafter, the discussion considered the details of the consultation of the report and was eager to contribute to the process.
In 2021, the United Kingdom’s watchdog, Financial Conduct Authority (FCA), banned Binance Markets Limited from undertaking any regulated activity in the region, citing weak measures to protect clients. The ban follows their removal from CFA registration in May 2021, claiming they would not comply with strict anti-money laundering requirements.
