​Binance and Circle support the British version of cryptocurrency regulation

What’s new? The UK HM Treasury has begun consultations on the introduction of a new regulatory regime for digital assets, with feedback on the bill already left by crypto exchange Binance and Circle, which issues the centralized USDC stablecoin. For example, Binance called for a focus on consumer protection, market integrity, and financial stability, adding that over-regulation could stifle innovation and competition and lead users to unregulated markets. Circle, for its part, called for clarification of the regulation of stablecoins backed by fiat currency.

Circle’s response

What else did the companies say? Binance questioned whether crypto trading platforms can act as asset issuers in the traditional sense, and called for a more precise definition of the decentralized finance (DeFi) sector to take its specifics into account when drafting new rules.

Binance CEO Changpeng Zhao said that exchanges need to conduct their own asset listing/delisting, but should also provide users with full due diligence information on projects and be accountable for it. The exchange supported a legislative initiative by the UK government that aims to “mitigate the risks and challenges specific to crypto,” Zhao added.

Last week #Binance responded to the UK HM Treasury's consultation on the ‘future financial services regulatory regime for cryptoassets’.Always good to see policy makers openly seek input and suggestions.Quick thread about our response. — CZ 🔶 Binance (@cz_binance) May 2, 2023

Circle also said that it agrees with the UK authorities’ goals “to bring crypto assets into the UK regulatory perimeter and create proportionate and agile rules so that digital asset firms can thrive and provide innovative and cost-reducing financial services to the UK market.”

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Circle believes that the UK should make the registration process for crypto companies “simple and transparent, with clear indicative timelines and feedback from supervisors.”

The company has also asked the HM Treasury to more clearly distinguish between concepts such as ‘cryptoasset’ activity versus activity related to payment stablecoins involved in payment service provision.”

In early 2023, the country imposed tax breaks for foreign investors buying cryptocurrencies through local brokers. In early March, local banks began placing limits on the purchase of digital assets with debit cards and prohibiting payment with credit cards altogether.

In the same month, it became known that from 2025 the UK will require citizens to declare income from cryptocurrencies. The move is expected to bring an additional $12 million to the state budget.

Zhao previously said that the European Union’s Markets in Crypto-Assets (MiCA) law would become a “global regulatory standard copied around the world.” It was adopted by the EU authorities on April 20.