[2022-10-26] UK Votes in Favor of Recognizing Crypto as Regulated Financial Inst

Ludmilla_rose1995

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Quote from: Kakmakr on November 22, 2022, 12:37:13 AM

The law makers have to clearly define Crypto currencies as a financial instrument, because they cannot find you guilty of a financial crime, if you did not steal something of value. It also applies to tax evasion, if you did not declare your financial investments into Crypto currencies.

If they cannot define Crypto currencies, then criminals will have a loophole to exploit and to prevent criminal prosecution for their financial crimes. All of this is done to align laws to protect against tax evasion and also to confiscate Crypto currencies, when it was used in crime.

defining cryptocurrency specifically is getting more and more important every day imo, and I support what the UK government will do,, look what happened to SBF, until now he's still roaming freely in the bahamas, without being able to even be caught. people from many countries have suffered huge losses with the FTX case, if there was a special definition and regulations for the exchange then I don't think CEX developers can be happy to use user money without user permission.

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The law makers have to clearly define Crypto currencies as a financial instrument, because they cannot find you guilty of a financial crime, if you did not steal something of value. It also applies to tax evasion, if you did not declare your financial investments into Crypto currencies.

If they cannot define Crypto currencies, then criminals will have a loophole to exploit and to prevent criminal prosecution for their financial crimes. All of this is done to align laws to protect against tax evasion and also to confiscate Crypto currencies, when it was used in crime.

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@ETFbitcoin. Agreed. It is not very excitng news from the most religious of bitcoin maximalists that want bitcoin to be recognized as currency, however, for investors who are using bitcoin as an investment, this is certainly good news. It will help pump the price hehehe.

On NFTs and Defi, if it has begun and if there is no clarity in regulations on NFTs, it will certainly only grow. With moneylaundering pumping the NFTspace, this will only become more attractive for investors. 2017 was the pump of ICOs, 2021 was the pump of Defi, I speculate 2024 will be the pump of NFTs.

ABCbits

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As financial instrument? It's not really exciting news to Bitcoiner. UK already have guideline about receiving cryptocurrency since 2014[1], so IMO the next step should be accepting cryptocurrency as payment option.

Quote from: bbc.reporter on October 26, 2022, 08:43:08 PM

I speculate the next unregulated part of the cryptospace and where criminality's billions of dollars might flow is in NFTs. This cashflow going inside might help NFT total market capitalization grow by 10x or more.

Since NFT usually considered as part/subset of DeFi, it already happen. If you read "The 2022 Crypto Crime Report" by Chainalysis[2-3], DeFi has 1964% growth for money laundering.

[1] https://web.archive.org/web/20140925015823/https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies
[2] https://go.chainalysis.com/2022-crypto-crime-report.html
[3] https://blog.chainalysis.com/reports/2022-crypto-crime-report-introduction/

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Quote from: NeuroticFish on October 27, 2022, 02:34:02 AM

Quote from: bbc.reporter on October 26, 2022, 08:43:08 PM

@NeuroticFish. What is certainly bullish about this is there will be more institutional investors that will buy and hold bitcoin because the fear of it being under an unknown legal classification is not there anymore. Also, there might be more financial outlets for regular people to buy small amounts of bitcoin and altcoins.

Imho this law only brings more clarity. Crypto was not prohibited in UK and businesses have contracts or departments for the legal part, there was not much of fear there.
So there may be only the average Joe who may get some more trust in that, but the history tells that people tend to invest when the price grows fast and they FOMO, not when there's a clearer legal status...

Quote from: bbc.reporter on October 26, 2022, 08:43:08 PM

I speculate the next unregulated part of the cryptospace and where criminality's billions of dollars might flow is in NFTs. This cashflow going inside might help NFT total market capitalization grow by 10x or more.

I don't know... while proper companies (eg Disney) start testing the waters of the NFT world, for now I see most of the NFTs are based on images worse than my son would do in Paint(brush).
What I say is that NFT scene has to evolve some more to indeed get hands on the big money.

Agreed, however, it is the institutional investors mostly that are unwilling to take a risk because there is no clarity on regulations. Their billions of liquidity and cashflow will certainly cause the new fomo of the new bull market. The average joe has never really moved the market. We are usually the dumping ground hehehehe.

On NFTs, it appears not much people has understood that it is not only about the artwork. Much of it is about the idea, the community and the culture. It is very much similar to memes. But memes where you can make some money like altcoins hehe.

@cr1776. Trading futures is for a different type of investor. They only want to profit on the volatility of the markets. They do not want to hold the assets.

cr1776

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Quote from: bbc.reporter on October 26, 2022, 08:43:08 PM

@NeuroticFish. What is certainly bullish about this is there will be more institutional investors that will buy and hold bitcoin because the fear of it being under an unknown legal classification is not there anymore. Also, there might be more financial outlets for regular people to buy small amounts of bitcoin and altcoins.

I speculate the next unregulated part of the cryptospace and where criminality's billions of dollars might flow is in NFTs. This cashflow going inside might help NFT total market capitalization grow by 10x or more.

One would hope they would hold "physical bitcoin" vs futures. Holding bitcoin futures is just stupid since you are stuck with counterparty risk.

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Quote from: bbc.reporter on October 26, 2022, 08:43:08 PM

@NeuroticFish. What is certainly bullish about this is there will be more institutional investors that will buy and hold bitcoin because the fear of it being under an unknown legal classification is not there anymore. Also, there might be more financial outlets for regular people to buy small amounts of bitcoin and altcoins.

Imho this law only brings more clarity. Crypto was not prohibited in UK and businesses have contracts or departments for the legal part, there was not much of fear there.
So there may be only the average Joe who may get some more trust in that, but the history tells that people tend to invest when the price grows fast and they FOMO, not when there's a clearer legal status...

Quote from: bbc.reporter on October 26, 2022, 08:43:08 PM

I speculate the next unregulated part of the cryptospace and where criminality's billions of dollars might flow is in NFTs. This cashflow going inside might help NFT total market capitalization grow by 10x or more.

I don't know... while proper companies (eg Disney) start testing the waters of the NFT world, for now I see most of the NFTs are based on images worse than my son would do in Paint(brush).
What I say is that NFT scene has to evolve some more to indeed get hands on the big money.

bbc.reporter

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@NeuroticFish. What is certainly bullish about this is there will be more institutional investors that will buy and hold bitcoin because the fear of it being under an unknown legal classification is not there anymore. Also, there might be more financial outlets for regular people to buy small amounts of bitcoin and altcoins.

I speculate the next unregulated part of the cryptospace and where criminality's billions of dollars might flow is in NFTs. This cashflow going inside might help NFT total market capitalization grow by 10x or more.

NeuroticFish

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I'd say that this is more a setting to "correct" legal framework for tax reasons (and maybe for the businesses handling crypto), instead of a good news for the average Joe.
Good news would have been to recognize at least Bitcoin as a currency (and, since one can always dream big, maybe even legal tender, heh).

I am not sure what was the cryptocurrencies' legal status until now in UK...

bbc.reporter

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This might be good on some sides of the argument and this might also be bad on the regulatory side, however, I am certain they did this more for the preperation of the future and the recovery of their economy than for regulating the cryptospace. The liquidity that the cryptospace might offer on the next bull market might be trillions more than what we had during 2020-2021.

The UK’s economy has been declining. Citizens have been dealing with a slew of concurrent issues, ranging from inflationary concerns to the energy crisis. In the midst of all of this, Prime Minister Liz Truss announced her resignation at the end of last week.

Rishi Sunak has now taken over the position of Prime Minister. Sunak is pro-crypto, as he envisions making the UK a crypto innovation hub. Amidst this situation, lawmakers in the UK voted to recognize cryptocurrencies as regulated financial instruments and products.

The vote was passed by the House of Commons, which is the Parliament’s lower house. The topic was discussed for a line-by-line reading of the proposed Financial Services and Markets Bill. The bill also discussed the inclusion of cryptocurrencies as regulated financial services, which was put forth by Andrew Griffith. The bill includes the regulatory details for the inclusion of stablecoins.

“The substance here is to treat them [crypto] like other forms of financial assets and not to prefer them, but also to bring them within the scope of regulation for the first time,” Griffith, the financial services and city minister.

Read in full https://watcher.guru/news/uk-votes-in-favor-of-recognizing-crypto-as-regulated-financial-instruments

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