Summary:
- The UK is looking to transform Britain into a crypto hub.
- However, the UK’s digital minister has issued caution as they want to have proper investor protections.
- The UK also wants to create measures to guarantee crypto will not be used for money laundering or circumventing global sanctions.
The UK’s digital minister, Chris Philp, has reiterated plans to transform Britain into a crypto hub. At the same time, he issued caution on how to go about it, pointing out the need for measures that protect investors and prevent digital assets from being used in money laundering and circumventing global sanctions.
He said:
We do intend the United Kingdom and London to be crypto centers.
But of course we’ve got to do that in a way that protects the public and in particular pays attention to issues concerning for example money laundering, and making sure that crypto is not used as a way to circumvent things like sanctions.
Minister Philp’s comments complement those made by the UK treasury back in April when it announced plans to turn the region into a global crypto hub. The move will ultimately increase the visibility of the UK as a financial hub despite the finalization of Brexit.
At the same time, regulators in the UK, the United States, and the European Union are proposing possible crypto-based legislation aimed at providing clarity on the entire industry. Minster Philp expressed optimism that the UK treasury and its regulators will soon reach an agreement. He said:
The Treasury are working closely with the Bank of England, the Financial Conduct Authority and the Prudential Regulation Authority to make sure that balance is struck in the right way.
CZ and Binance Had Debunked the Theory that Crypto is The Best Option for Criminals and Money Launders.
Circling back at Minister Philp’s concerns about crypto being used for money laundering and evading sanctions, CZ and the team at Binance had pointed out that the public nature of blockchain transactions made digital assets a poor choice for criminal activity. They explained:
Unlike cash, which is nearly impossible to track, Blockchain has proven to be one of the most powerful tools for law enforcement.
The immutable, public nature of the blockchain makes crypto a poor choice for money laundering because it allows law enforcement to uncover and trace money laundering far easier than cash transactions.
Cash Still Tops the List as the Preferred Medium by Criminals.
The Binance team also pointed out that of all crypto transactions in 2021, 0.15% were associated with some type of illegal activity. In comparison, ‘2% to 5% of cash transactions, about $800 billion to $2 trillion in current US dollars, was associated with some type of illicit activity’ within the same year.
