Will the UK be as tough on cryptocurrency companies as the US?
With new marketing regulations coming into effect in the UK next month, cryptocurrency exchange Bibit does not expect to continue operating in the country.
The exchange’s CEO, Ben Joe, In the states Any cryptocurrency company within the borders of the UK can be held liable on request for the use of the English language.
Problems with the new marketing rules
As reported by The Block, Zhou said regulation was becoming “tougher” and the exchange would have to “withdraw from many countries” — the UK being one of them.
The country’s Financial Conduct Authority (FCA) has contacted Bybit with rival exchanges such as Binance and OKX to see how these companies deal with the new law that restricts how cryptocurrency companies can serve citizens.
Until October 8, these businesses can continue to request a reverse, so that the businesses can serve UK customers as long as the business relationship is initiated by the customer only. After that, it becomes very difficult to manipulate the rules.
“The new law is that if you use English as your language, they’ll see you as trying to solicit your users, so you can’t say you’re soliciting upside down,” Zhou said. “Everyone is in trouble. So everyone is thinking about plans to deal with this new law,” he said.
The law also requires that all cryptocurrency company advertisements be approved and not inappropriately encourage people to invest. Those who fail to comply within the next month face an unlimited fine or up to two years in prison.
For Zhou, simply leaving seems like the easiest option. “We recently left France,” he noted.
United Kingdom vs. United States
Earlier this year, the United Kingdom passed the Financial Services and Markets Bill, establishing cryptocurrencies and stablecoins as regulated financial activities under the supervision of the Financial Conduct Authority (FCA). Prime Minister Rishi Sunak has expressed his desire to make the UK a digital asset hub.
That region’s stricter regulations could damage the hopes of US cryptocurrency firms escaping their home region’s hostile regulatory climate to the UK. Coinbase CEO Brian Armstrong has suggested that such steps should be taken if his company cannot get legal clarity on cryptocurrencies in the US.
The Securities and Exchange Commission (SEC) has already launched several lawsuits against companies like Coinbase, Kraken and Binance for violating securities laws.
Author: Marcelo Roncate
History student and retired businessman. He is a staunch Bitcoin enthusiast and a declared opponent of financial pyramids.
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