In its ambition to be a global crypto asset hub, the UK faces significant
obstacles that threaten to impede progress in the crypto space. The dual
challenge involves hurdles related to retail customer access to crypto products
and the complexities surrounding companies attempting to open and maintain
banking accounts within the UK.
Retail Customer Access at Risk
Retail customers’ ability to access crypto products faces a critical
challenge and a driver behind this seems to be the stringent app reporting
requirements imposed by the Payment Systems Regulator (PSR). While these
measures enhance risk management, they inadvertently deny potential customers
access to essential financial services, creating a roadblock for crypto
businesses.
Banking Woes for Crypto Companies: A Stifling Effect
Crypto companies in the UK encounter difficulties in opening and
maintaining banking accounts, compelling many to resort to operating offshore. This limitation stifles innovation, scalability, and the
introduction of new products and services on a global scale.
International examples showcase that banks can
support crypto-related businesses while ensuring regulatory compliance. Many jurisdictions throughout the world have implemented measures to prevent discrimination against
regulated cryptoasset service providers, thus fostering confidence in banks and
enhancing transparency. In contrast, the UK’s challenges have led some
businesses to seek banking services in other countries, raising concerns about concentrated risks within the sector.
Blockchain Advocacy in Parliament: A Call for Action
In response to these challenges, Member of Parliament Natalie Elphicke is
calling for the UK government to do more to harness the power of blockchain
technology.
Speaking at an event hosted by the All Party Parliamentary Group on
Blockchain Technologies, Elphicke emphasized the need for the UK to lead in
understanding and applying blockchain technologies. She sees blockchain’s
potential in providing transparency in global supply chains, digital identity,
and data purposes.
Regulatory Pace and Collaboration: Keys to Success
Elphicke urges the UK to match the pace of international regulators and
collaborate with other countries on blockchain issues. While the UK has
expressed its desire to be a crypto hub, it has done little in terms of
blockchain policy. The blockchain APPG group, chaired by Elphicke, plans to
launch round table discussions and seek industry input on how the UK…
