UK and EU: What Is New on the Decentralized Market?
Cryptocurrencies develop faster with each day, and the market is joined by more investors, entrepreneurs and emerging projects.
By the end of April 2018, there are 888 active functioning altcoins with the total market capitalization of more than $424 billion. This is definitely an indicator that cryptocurrencies are expanding. However, in some countries, the market meets regulations from the government. In some places regulations are strict and limit cryptocurrency expansion and usage. Let’s see what is currently going on in Britain and Europe.
What Does UK Think About Cryptocurrencies?
Blockchain and virtual currency are being investigated deeply. Government economic ministry, The U.K. Treasury, decided to conduct an investigation of crypto money to understand their role for British economy, opportunities they provide, and risks for both customers and government. In order to determine how much crypto sphere should be regulated, blockchain technology’s potential effect on the whole infrastructure is under analysis. Mainly, the government is interested in the extent blockchain can be disruptive to government economy and standard financial operations.
UK & Crypto: Market Changes
While the government is analysing crypto environment, changes take place. Recently, Coinbase received an e-money license which gives it opportunities to offer its payment services in the UK and the whole EU as well. It is still unclear how Brexit will affect operations, however, a British member of EP believes that Britain will benefit from blockchain technologies more than EU after its exit.
In fact, Britain is aimed at becoming the first country with the highest level of virtual currencies technology development. That is why the Treasury, the Bank of England and the Financial Conduct Authority, united in order to launch crypto assets task force to boost fintech and manage risks around crypto assets. Fintech firms can partner with banks without barriers.
Crypto exchanges are developing as well: British CoinfloorEX launched the first physically settled bitcoin future contracts. Although bitcoin futures are still discussed whether they have more benefits or drawbacks, CoinfloorEX develops British crypto market and cooperates with other companies.
EU & Crypto: Recent News
European Union have some countries which are very tolerant and even supportive to blockchain, such as Estonia, Cyprus, Malta, and the Czech Republic. However, The European Securities and Markets Authority (ESMA) is concerned with cryptocurrencies and is thinking about taking tough measures. Recently, it has already announced its new policy regarding CFDs: now binary options are prohibited, and retail investors are required to pay at least 50% of the total value of contracts for difference. Regulator may consider even stricter policies in the future.
What is waiting for decentralized market in the UK and EU in the future? Should the market expect new regulations? These and other questions will be addressed at the Blockchain International Show London on June 6-7. The blockchain show is the largest event focusing on crypto environment in Europe, coordinated by Smile-Expo.
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