In addition to cryptographic assets, decentralized finances also fall within the scope of the regulation that Britain intends to apply, but DeFi activities will be considered "case by case" rather than on a universal regulatory framework.

The main reason for the additional regulation is a lack of information and misleading advertisements, which create risks for customers using blockchain-related services and applications.

According to the announcement, consumer risks are also present in the cryptocurrency market. Furthermore, it is not entirely clear what regulators mean when it comes to removing the reference to blockchain from the definition of cryptocurrency assets due to the inseparable nature of the technologies.

Previously, Britain's relationship with crypto assets and blockchain was considered a secret, with various companies accepting cryptocurrencies for payments such as the Chai Ada coffee shop in West London.

by Alessandro Crea

Thursday 20 January 2022 13:00