[UK, 19/07/2023] In the past year, the crypto asset industry has had great successes and significant failures. Unfortunately, there have been fraud, scams, and mishandling of customer funds. This emphasizes the importance of strong regulatory policy and global supervision, even though the issues are not due to problems with the crypto assets or blockchain technology.

Setting Expectations

Efforts are being made by global leaders, such as the Financial Stability Board, Financial Action Task Force, and Basel Committee on Banking Supervision, to establish appropriate market expectations. Meanwhile, the European Union is completing the final stages of the new Markets in Crypto-Assets Regulation. In the United Arab Emirates, Dubai officials are establishing the world's first authority dedicated solely to virtual assets.

UK Government Regulation

UK Government has plans to regulate crypto assets as a financial instrument. In contrast, progress has been made in the United States regarding legislation on digital assets, but the timing of its enactment is uncertain.
UK authorities will enforce rules to prevent money laundering through cryptocurrency by regulating crypto assets and expanding the financial promotions regime. The Financial Conduct Authority (FCA) will regulate promotions related to crypto assets and ensure that they are fair, clear, and not misleading.

Regulatory Changes

The 2023 PwC Crypto Regulation report provides information about digital asset regulatory changes in more than 25 countries. The report indicates that many regulators worldwide have implemented or plan to enact regulatory schemes to manage digital assets. Moreover, these changes may occur faster due to recent events in the sector.

Clarity in the Digital Assets Space

Digital assets regulation provides traditional financial institutions with the clarity and certainty they need to enter the digital assets space and begin creating their offerings. Crypto-native firms may need to quickly expand their regulatory expertise and compliance oversight to meet global financial services regulatory standards if regulatory clarity is established.

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