In a significant development for the crypto industry, the United Kingdom’s His Majesty’s Treasury (HMT) has released its long-awaited update on the regulatory framework for crypto assets.
According to Brian Quintenz, Head of Policy at a16z Crypto, a venture capital fund, the announcement signals the UK’s commitment to fostering an open, well-regulated, and technologically advanced capital market that embraces the potential of cryptocurrencies and blockchain technology.
UK Takes Proactive Stance, Setting Clear Path For Crypto Regulation
The HMT’s response to the crypto asset regulatory regime covers several key aspects. Firstly, it excludes airdrops from the token issuance regulatory perimeter, recognizing that they do not constitute a public offering.
Additionally, the statement clarifies that non-fungible tokens (NFTs), including in-game purchases and sales of digital items, are considered out of scope, emphasizing their classification as non-financial services activity.
According to Quintenz, the UK government’s approach to decentralized finance (DeFi) reflects a cautious yet forward-thinking stance. The HMT acknowledges the potential role of DeFi in financial services as the crypto asset sector expands and blockchain-based solutions gain wider adoption.
Importantly, the government emphasizes that it does not intend to ban…
