Britain to Regulate Crypto and DeFi

Great Britain is seeking to reign on cryptocurrency by introducing laws to regulate decentralized finance (DeFi), that’s according to Walter Bloomberg’s latest tweets. The British financial regulators are also looking at the possibility of removing reference of blockchain from the definition of crypto assets. However, it is not yet clear what regulators mean by this latest move as the two technologies are technically inseparable.

The drive to introduce measures aimed at regulating cryptocurrency is linked to the U.K.’s desire to protect customers using blockchain-related services from misleading ads and address the lack of information among the European nation.

However, regulatory purge on DeFi will narrow its scope to look at the promising technology on a case-by-case basis rather than the universal framework.

Britain is not the first country to take this course of action. Countries like China have in the past banned the entire crypto mining in its territory, sending miners into huge losses as some moved to countries with friendly policies to cryptocurrency. Other countries that have banned cryptocurrency are Egypt, Iraq, Qatar, Morocco, Oman, Tunisia, Bangladesh, Macedonia, and Algeria.

Widely criticized for its volatility, many people have turned to crypto as either an investment or a lifeline in economies that have local currencies doing badly. This has put the legal status of Bitcoin and other cryptocurrencies to vary from country to country, with some partially restricting it or banning it entirely. As of now, it’s a wait-and-see game to see how Britain will approach the whole issue in the coming days or months.

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