Cryptocurrencies: Great Britain should not be a slight touch for the heavy defi troops

The City of London constantly tries up new coats. In 2012, British Chancellor George Osborne campaigned to make it the largest Renminbi trade center outside China. Six years later, his successor Philip Hammond spoke about the chances of Great Britain to become the world leaders in the Green Finance area. The Ministry of Finance is now paying attention to the blockchain. It declared a contradictory endeavor to make Great Britain a "global center" for the decentralized financial industry (Defi) this week.

The announcement was not taken as seriously as the government would like to have. Chancellor Rishi Sunak charged plans for the Royal MINT to issue a non -fungable token as a symbol for the "future -oriented approach" of Great Britain. The reality, say lobbyists, looks very different. At the beginning of this year, ex-Chancellor Hammond, now a senior advisor to the crypto company Copper, claimed that Great Britain had been overtaken by other financial centers, including the EU.

innovation shampions are dealing with concerned overseers. On the same day when the Ministry of Finance rolled out the welcome mat, the governor of the Bank of England, Andrew Bailey, decrypted cryptocurrencies as a new "front line" for criminal fraud.

crypto groups must now pass money laundering exams in order to be active in Great Britain. More than 80 percent of companies that have applied for a complete registration with the Financial Conduct Authority have either withdrawn their applications or were rejected. However, these companies can continue to sell their services in the United Kingdom. This will probably be bad for British consumer protection and for jobs in the UK.

The United Kingdom does not have to struggle with these problems alone. In the United States, it is unclear which US finance supervision crypto companies should supervise. Gary Gensler, Chairman of the Securities and Exchange Commission, proposed this week to divide the supervision with another authority.

The Ministry of Finance should not be shouted down because it has tried to recognize new opportunities for the British financial industry. His plan to regulate a wider range of crypto activities is to be welcomed. But his ambitions for the city do not change the arguments for strict regulation. This is not a sector that fits a slight touch.