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    UK crypto rules unclear for firms avoiding Europe’s MiCA regulation

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    UK’s unclear stance on cryptocurrency regulation means it is not viewed by crypto firms as a respite from Europe’s strict cryptocurrency rules, says Sophie Bowler, boss of compliance at Zodia Custody. Natalia Latka, director of public policy at Merkle Science, and Su Carpenter, executive director of CryptoUK, concur, citing the UK’s unpredictable regulation landscape and lengthy financial authority registration process. Further hindrances are election-related delays and the new Labour government’s unclear digital asset sector plans. The UK’s crypto regulatory approach needs to be more welcoming to the changeable digital asset industry.

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    The scene around cryptocurrency regulation in the UK is too cloudy for companies looking for a break from MiCA, Europe’s strict crypto standards – that’s what some folks in the industry are saying. Sophie Bowler, the boss of compliance at a UK company called Zodia Custody, recently predicted we’ll see a switch to the UK from the EU, as companies try to escape the tough rules of MiCA.

    But hold up. Some heads of CryptoUK – a trade union all about fair crypto regulation in the UK – and Merkle Science, a company that digs into crypto risk, don’t reckon the UK is the answer.

    Why not? Well, according to Natalia Latka, director of public policy at Merkle Science, MiCA’s strict rules are a huge hassle for foreign crypto businesses and stablecoin issuers. The rules could wall off Europe, and make local businesses think about setting up shop elsewhere. But she’s not sure the UK is that inviting either, thanks in part to the UK’s unpredictable regulation landscape and lengthy registration process with its financial authority.

    Agreeing with Latka, Su Carpenter, an executive director of CryptoUK, mentioned that the UK’s crypto regulation efforts are still slowed down by delays steming from a general election and a change in government. She also highlighted the lack of clear direction from the new Labour government on how they’ll handle the digital asset sector.

    Overall, the verdict seems to be that the UK’s approach to crypto might not be an exact copy of MiCA, but it will definitely need more tweaks to keep up with the ever-changing crypto industry. Here’s hoping for a more crypto-friendly regulatory environment in the UK soon!

    Source: Cointelegraph

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