British crypto-experience

Home » REGULATIONS » British crypto-experience
2018-04-16
British crypto-experience

Great Britain has long been a “classic offshore” with low tax rates and excellent conditions for doing business: a developed banking system, large stock exchanges, etc. The UK is good for setting up a company, but the ICO is still better to be conducted in more suitable jurisdictions, for example, the Cayman Islands or the British Virgin Islands.

The UK is one of the leaders in the development of blockchain projects and cryptocurrency, and one of the most favorable and convenient jurisdictions for conducting cryptocurrency-related business. This is also confirmed by the report of the Atomico venture fund. The state openly supports start-ups that are associated with digital currencies. In addition, the United Kingdom has a well-developed banking and financial sector, as well as all necessary infrastructure for a comfortable business.

Despite the general support of the ideas of implementing blockchain and cryptocurrencies in the life of the state and citizens, the final position of regulators on the legal aspects of activities related to cryptocurrencies has not yet been worked out. In fact, the cryptocurrency is in the grey zone, i.e. in a legal vacuum. For this reason, there is a possibility of introducing a special regulation that can play against companies that have chosen the United Kingdom for ICO.

British companies are used as project headquarters and the release of tokens is carried out in more “favorable” jurisdictions such as the Cayman Islands, the British Virgin Islands, Switzerland or Singapore.

Legal Regulation of Cryptocurrency

In the period from 2014 to 2017, the Financial Regulations Authority of the United Kingdom (the FCA) stated that the cryptocurrency can in no way be regulated by UK financial law.

For example, the Electronic Money Regulations (EMR 2011) states that cryptocurrency is not “electronic money”, since its emission is not centralized. In this regard, the relevant organizations do not have the authority to regulate cryptocurrencies. Cryptocurrency is also not a “value” in accordance with the Payment Services Regulations 2009 (PSR 2009) and, it is not a banknote, a coin, electronic money or other monetary units (scriptural money).

Thus, the UK’s cryptocurrencies are currently still considered to be a unique combination of numbers, which is derived from complex mathematical calculations and algorithms. Therefore, bitcoin and other cryptocurrencies are not subject to the Law on Countering the Legalization of Proceeds Derived Illegally (The Money Laundering Regulations 2007, hereinafter referred to as MLR 2007), as well as other provisions of UK financial legislation.

Legal regulation of the tokens and ICO

In September 2017, FCA also told in the interview to The Financial Times that most of the tokens sold under various ICOs fall under the current legal and regulatory framework of the country.

“Many ICOs do not fall into a regulated field. Nevertheless, depending on the structure and features of the token, some of the investments may be regulated by law. Companies and firms participating in the ICO can carry out regulated activities, “said the representative of the FCA.
True, the regulator did not specify in which cases the provisions of the legislation in the sphere of securities and the stock market will be applied, and in which there are not.

CRYPTOCURRENCIES
  • bitcoinBitcoin$3,486.25
  • rippleXRP$0.315554
  • ethereumEthereum$117.00
  • tetherTether$1.00
  • eosEOS$2.29
  • stellarStellar$0.101717
  • litecoinLitecoin$30.72
  • cardanoCardano$0.041986
  • tronTRON$0.022984
  • moneroMonero$43.23
  • iotaIOTA$0.293124
  • nemNEM$0.054604
  • dashDash$67.69
  • neoNEO$7.34
The complexity Bitcoin mining is growing
As a result of the next recalculation of the complexity of mining Bitcoin on the night of January 14, this figure increased by almost 5%. The complexity of mining is a parameter of the blockchain network, which shows how difficult it is to perform a mathematical calculation to find a new unit and, accordingly, to […]
2019-01-18 0 5
Bitcoin volatility fell by 98% over the year.
Since January last year, the first cryptocurrency volatility has decreased by 98%. So, if on January 16, 2018, this figure was $ 3,468, then a year later – only $ 61, notes CoinDesk Markets analyst Omkar Godboul. The daily volatility over the past year decreased from 9.1% to 3.6%, although on December 16, 2018 was […]
2019-01-17 0 8
Will Ethereum hard fork Constantinople be launched this week?
Ethereum, one of the largest and most influential blockchains in the world, is planning to improve its code in the near future. A massive system upgrade, or hardfork, called “Constantinople” will include a number of technological improvements called to enhance practicality and the architecture of smart contracts. The Ethereum community will make a final decision […]
2019-01-15 0 31
The Brit​ish citizen was trying to buy a gun with cryptocurrency
David Mitchell, a 48-year old British citizen, was arrested by the US police after an attempt to purchase a gun with cryptocurrency via the dark web. Mr. Mitchell was planning to buy a Glock 9mm pistol which costs around £2,000. The man explained to the court that he was curious whether it is possible to […]
2019-01-14 0 18
© 2017–2018