Oliver Linch, CEO of Bittrex Global and an experienced solicitor from Shearman & Sterling, has voiced his support for the UK Treasury’s crypto asset regulation proposals. He considers these proposals a significant stride toward positioning the UK as a central hub for digital assets. These recommendations have surfaced following events like the FTX failure and aim to incorporate crypto activities into the existing framework of financial services laws, including the recently updated Financial Promotions rules.
Linch commends the swift implementation of these regulations in the UK, underscoring their role in providing clarity, ensuring consumer protection, and fostering institutional investment. As per these proposals, companies engaging with UK retail consumers must secure authorization from the Financial Conduct Authority (FCA), irrespective of their geographical location.
The new recommendations also introduce fresh standards for crypto advertising, adherence to the Financial Action Task Force’s Travel Rule, rigorous admission criteria for crypto exchanges, and mandatory disclosure requirements for new asset listings. Notably, these regulations do not cover aspects related to Decentralized Finance (DeFi).
These measures differentiate the UK from Dubai’s VARA Regulations and the European Union’s MiCA, aligning instead with Prime Minister Rishi Sunak’s vision of establishing a Web3 hub in the UK. This comprehensive approach underscores the government’s alignment with Bittrex Global’s perspective that crypto plays a pivotal role in the financial sector and encourages businesses to establish their presence in the UK.