News
The Bank of England may relax proposed caps on corporate stablecoin holdings after industry backlash, as the UK races to stay competitive in the $314 billion market.
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United Kingdom News
The Financial Conduct Authority (FCA) serves as the primary financial regulatory body in the United Kingdom. While the FCA ensures that crypto asset firms adhere to effective Anti-Money Laundering and Counter-Terrorist Financing procedures, crypto assets themselves generally remain unregulated. Notably, security tokens, possessing characteristics similar to specified investments such as shares or debt instruments, are the sole FCA-regulated crypto assets.
In the U.K., cryptocurrency taxation is outlined in His Majesty’s Revenue and Customs “Cryptoassets Manual.” Cryptocurrencies are categorized into exchange tokens (used for payment), security tokens (representing interests in businesses), utility tokens (providing access to services) and stablecoins (pegged to fiat money).
Individuals holding crypto assets are taxed on profits, including from airdrops, mining and salary payments. Capital gains tax applies, with a £12,570 tax-free allowance for 2023. Gains exceeding this limit are taxed at 20% to 40%, rising to 45% for higher incomes. Unlike the United States, the U.K. lacks separate short-term and long-term capital gains tax rates, with taxation determined by one’s income tax band, emphasizing the importance of understanding specific transaction types and applicable tax regulations.
A significant development occurred on June 8, 2023, when the FCA published a policy statement (PS23/6), expanding its oversight to include crypto asset promotions. This marked the first time crypto asset promotions fell under the FCA’s regulatory purview, indicating an important step in regulating the U.K. crypto industry.
- News
The UK will lift a ban on specific crypto exchange-traded products starting next week, but the regulator said its “framework would need to be updated” before considering ETFs.
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The UK has again ordered Apple to open access to encrypted iCloud backups for British users, a move that could expose crypto wallet keys to hacking.
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UK authorities could keep $6.4 billion in seized Bitcoin profits instead of compensating fraud victims at the current value, sparking a debate over asset recovery ethics.
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Bank of England Governor Andrew Bailey said stablecoins could thrive in a system that separates money from credit, reducing the UK’s reliance on commercial banks.
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CoinShares is set to acquire investment manager Bastion Asset Management to launch actively managed crypto ETFs in the US.
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Robinhood eyes UK and EU rollout of its booming prediction markets, but faces questions over classification.
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G7 nations are introducing stablecoin rules, from Japan’s pioneering framework to the US GENIUS Act and Europe’s MiCA, reshaping the future of digital money.
3229 - Opinion
The UK government talks about becoming a “leading global crypto hub,” but slow policy development and fragmented regulation risk losing ground to competitors.
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UK Finance launched a tokenized deposits pilot in partnership with six major banks, including Barclays, HSBC and Lloyds Banking Group.
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The Transatlantic Taskforce for Markets of the Future will focus on exploring crypto laws and regulations between the two countries.
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US President Donald Trump and UK Prime Minister Keir Starmer signed a memorandum of understanding on Thursday during Trump's state visit to the United Kingdom.
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Nvidia’s reported $683 million bet on Nscale aligns with the UK government’s drive to boost national AI infrastructure.
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The UK’s Financial Conduct Authority seeks comments on whether Consumer Duty, a rule requiring companies to deliver good consumer outcomes, should apply to crypto.
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LMAX Group entered the crypto derivatives arena with 100x leveraged perpetual futures for institutional investors, citing increased demand for these tools.
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