A proposal was made on Thursday, which urged the authorities to make a new category for digital assets such as cryptocurrencies. If this happens, we may get a new legal definition for crypto assets in the United Kingdom.
If we look at other parts of the world, it seems that authorities are already taking steps to properly regulate the crypto market. In fact, many are even comparing crypto with the wild west, as heard by the lawmakers from the EU.
Bitcoin, which gained its fame for spectacular gains, has lost most of its value since this year. If we look at the NFTs market, it exploded this year - Although the interest is not as high as it was a few months ago, the market has most definitely increased.
NFTs are digital files such as videos, images, audio, and animations that can be sold/bought as digital assets.
Finance Minister Rishi Sunak had a dream in which he wanted to ensure that the UK becomes a global hub for digital assets and crypto technology. At that time, he also asked whether it was possible to accommodate crypto and other digital assets in current laws or not.
The commission made a comment recently in which it stated that cryptocurrencies and NFTs could be added to the current asset classes. That's why a new proper definition and a new asset class will be needed for the crypto!
A new proposal has been introduced with the aim of making it easy for crypto firms and users. This proposal will allow for the formation of a legal framework that can protect the users while also enabling technology innovation in the United Kingdom.
The countries like the UK are making legal changes to accommodate the crypto... Elsewhere in the world, many countries are actually trying to curb crypto and any related technology!