UK should not look this crypto gift horse in the mouth

With the Biden administration and US regulators looking to run crypto out of town, the UK has a great chance to fill the crypto regulatory void.

With everything said and all the actions implemented thus far, it is obvious that the US wants to drive crypto from its shores. The only real reason for this must be that the bankers are frightened of what would happen if crypto were to really gain some traction and the ordinary investor started to pull out more bank funds with which to buy bitcoin and cryptocurrencies.

The fact that crypto is still not properly regulated in the US is hardly the fault of the cryptocurrency companies. All know that a visit to the Security and Exchange Commission (SEC) in order to register a crypto business is a fairly certain way of jumping to the front of the queue of those waiting to be sued by the regulatory agency.

The companies that the SEC has gone after in recent times are some of the biggest exchanges, probably with the thinking that if these can be pulled down then investors will have far fewer options for buying and selling crypto.

Even so it’s quite telling that these self same exchanges are among the most regulated in crypto, and those such as Coinbase have moved heaven and earth to accommodate the SEC, with only one aim - to become fully compliant and regulated.

Therefore, the writing is on the wall, and other jurisdictions will be sounded out with a view to an eventual move should the administration and the SEC have their way.

One such jurisdiction is the UK, in the heart of Europe, and armed with a financial system the equal of anything in the world. Out of Brexit and out of luck as far as international trade goes, the UK needs to reinvent itself if it is going to survive.

The country has touted itself as becoming a global hub for cryptocurrency. Prime Minister Sunak made the announcement of this when he was still the Chancellor of the Exchequer.

Coinbase has sounded out the UK as a possible country where they can do business, and Binance is also seeking to be fully accepted there. Even SEC commissioner Hester Peirce has suggested that some of the UK’s regulatory framework could be adapted for US use.

However, it must be wondered If, just like in the US, the banks will use their vast wealth and influence to change cryptocurrency policy to suit their own ends.

For such a conservative country as the UK, with banking deeply embedded in its DNA, to successfully become a global cryptocurrency hub, is going to take quite some changes. Expect the bankers to be solidly against it.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.