In this news:
Nikhil Rathi, CEO of the Financial Conduct Authority. Photo credit should read TOLGA AKMEN
AFP via Getty Images
The UK has long been a global financial leader, built on clear regulations, economic stability, and an open market. But the UK’s approach tells a different story regarding bitcoin and digital assets. Rather than encouraging innovation, regulators have sown uncertainty, which has resulted in driving businesses away, eroding competitiveness, restricting choice, and ultimately harming investors.
The Financial Conduct Authority, the UK’s financial markets regulator, has taken an approach that discourages growth and misclassifies fundamentally different assets under the same restrictive policies.
Bitcoin And Other Cryptoassets
Despite bitcoin's distinct characteristics, the FCA groups it with all cryptoassets under the 'restricted mass market investments' label. This blanket classification ignores bitcoin’s unique properties, creating unnecessary barriers for businesses and investors.
Failing to distinguish bitcoin as a decentralized monetary network from speculative crypto tokens undermines the UK’s position as a competitive financial hub. This broad-brush approach creates regulatory uncertainty, discourages institutional adoption, and pushes businesses to more welcoming jurisdictions.
Unlike speculative tokens and memecoins, bitcoin is a decentralized digital asset with a fixed supply secured by a global network of miners. It has no central issuer, no controlling authority, and cannot be altered or inflated by any single entity. Its supply schedule is predetermined, ensuring transparency and security unmatched by other digital assets.
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