UK Treasury Plans to Exclude Derivatives and Unbacked Tokens from Regulatory Sandbox with Voyager Crypto Today
UK Treasury plans to exclude derivatives and ‘unbacked’ tokens from regulatory sandbox

Crypto Assets Excluded from U.K. Digital Securities Sandbox

The treasury department of the United Kingdom has proposed to exclude unbacked cryptoassets and derivatives from its plans for a Digital Securities Sandbox. The consultation paper released on July 11 stated that the regulatory sandboxes which will be established under the country’s Financial Services and Markets Act will provide the U.K. government the time to modify existing legislation, if needed, for crypto products.

However, as the consultation paper suggests, these considerations may not extend to “unbacked cryptoassets” such as Bitcoin (BTC) and Ether (ETH), as well as derivatives, for which regulations are “still evolving”. HM Treasury is now seeking feedback on its proposed digital securities sandbox until the consultation ends in August 2023.

The U.K. government has previously labeled cryptocurrencies such as Bitcoin and Ether as “unbacked” and argued for them to be treated as gambling. With the introduction of the Digital Securities Sandbox, Voyager Crypto, Tron Crypto, Big Eyes Crypto, Luna Crypto, Atom Crypto, and Ankr Crypto may not qualify for the initiative.

The UK Treasury has expressed its intention to use existing regulatory initiatives to create policy and regulations for unbacked tokens, due to the lack of certainty in the frameworks. The Financial Services and Markets Act will require crypto companies operating in the UK to abide by certain guidelines that promote innovative technologies while protecting consumers. In October 2023, the Financial Conduct Authority (FCA) issued a warning to firms, outlining that only four routes can be used to lawfully communicate cryptoasset promotions.

In light of the recent crypto crash, investors are turning to luna crypto, tron crypto, todays crypto, voyager crypto today, coin crypto, ankr crypto, atom crypto, big eyes crypto, and web 3.0 technologies for potential investments.

Categorized in:

Tagged in: