With Donald J. Trump installed in the White House with a pro-crypto stance and a penchant for redefining the rules, making deals, and thinking systemically about business and productivity growth, change is firmly on the horizon.
Given the U.K.’s historic stance on crypto, it’s no surprise that the U.K. has begun to take the stance of softening its historically restrictive “slow choke” stance.
What we are witnessing is the world and the U.K. waking up and smelling the crypto coffee and the realisation that the U.S., the dominant world reserve currency, is not simply going to become the “fiat dinosaur,” but rather is going to meet the meteorite head-on with a rocket and lead the evolutionary push towards the stars.
Crypto is the money of the future, and the die has firmly been cast. Now the question for naysayers is: are they going to get on the rocket or be fossils in the crater?
Against this geopolitical backdrop, it is not at all surprising that we have seen the U.K. government reversing decisions on crypto left, right, and centre, with broader regulations from the OECD pushing crypto into the mainstream. This is notable in regulatory, legal, and economic trajectory focus:
- CARF: Although not U.K.-specific, upcoming CARF (Crypto-Asset Reporting Framework) regulations will add credibility to the space and push out less credible players by mandating enhanced KYC requirements of exchanges, service providers and intermediaries. You can read more about CARF here in our Moneybrain Regulatory Watch Article.
- Staking: Restricting staking via unclear regulations pushed the FCA’s narrative of crypto being “risky.” You can read more about Staking here in our Moneybrain Horizon Scanning Article.
- Draft Regulatory Framework for Cryptocurrency Assets in Early 2025: Showing a heightened focus on crypto for 2025, likely in response to the coming crypto wave predicted to hit the shores of Washington D.C.
- BRICS: BRICS the economic union of Brazil, Russia, India, China and South Africa and their proposed blockchain and member currency backed crypto tokens heightens the national importance of staying above the crypto curve and not closing the gates to the road so other countries can benefit from providing the alternative route.
Furthermore, operation Choke Point 2.0, seen by many as a revival of earlier U.S. policies targeting crypto under the guise of consumer protection, could finally be laid to rest. This shift, driven by pro-crypto leadership, signals a turning point where innovation might take precedence over restrictive oversight.
It’s increasingly evident, with a crypto party having taken place at President Trump’s inauguration and states across America preparing for Bitcoin reserves, that we are entering into the age of crypto, innovation, and regulatory tape unravelling. As America takes the lead, jurisdictions like the U.K. are falling in line and asking the pivotal question: which way, Mr T?