Main navigation

Breaking: Britain to Regulate Decentralized Finances

Tue, 01/18/2022 - 11:08
article image
Arman Shirinyan
Great Britain's watchdogs are aiming at the crypto industry and decentralized finances
Breaking: Britain to Regulate Decentralized Finances
Cover image via U.Today
Read U.TODAY on
Google News

Great Britain is aiming at regulating cryptocurrency and the DeFi industry as a whole. Regulators have also proposed to remove references to blockchain from the definition of crypto assets, but they have not clarified how, Walter Bloomberg reports.

In addition to crypto assets, decentralized finances are also in the scope of regulation, but DeFi assets are going to be considered on a "case by case basis" instead of one universal regulatory framework.

AVAX, Matic and Wrapped BNB and Ethereum Have Critical Vulnerability on Multichain, 450 ETH Stolen

The main reason for the additional regulation is the lack of information and misleading advertising, which creates risks for customers that are using blockchain-related services and applications.

According to the announcement, consumer risks are also present on the crypto market.

It is also not quite clear what regulators mean regarding removing the reference to blockchain from the definition of cryptocurrency assets due to the inseparable nature of the technologies.

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

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.