Bittrex Global CEO Oliver Linch, a seasoned Shearman & Sterling solicitor, has expressed support for the UK Treasury's crypto asset regulation proposals, viewing them as a significant step towards establishing the UK as a primary hub for digital assets. The proposals come in the wake of events such as the FTX failure and aim to integrate crypto activities into existing financial services laws, including the recently revised Financial Promotions rules.
Linch commended the UK's swift implementation of these rules, highlighting their importance in providing clarity, safeguarding consumers, and promoting institutional investment. Under these proposals, firms that interact with UK retail consumers are required to obtain authorization from the Financial Conduct Authority (FCA), regardless of their geographical location.
The new proposals also encompass new standards for crypto advertising, adherence to the Financial Action Task Force's Travel Rule, stringent criteria for crypto exchanges admission, and mandatory disclosures for new asset listings. Notably absent from these regulations, however, are provisions concerning Decentralized Finance (DeFi).
These measures contrast with Dubai's VARA Regulations and the European Union's MiCA but align with Prime Minister Rishi Sunak's ambition to build a Web3 hub in the UK. This integrated approach also signifies the government's agreement with Bittrex Global's stance that crypto is an essential part of the financial sector and encourages corporations to establish operations in the UK.
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