Cryptocurrency trading in the United Kingdom (UK) has been met with stiff regulations in times past.
This is the same reason why several brokerage firms have always maintained that users ensure that they follow regulations in their country before investing.
Yes, you may be thinking that every form of crypto trading is banned in the region. However, that;s the case. UK residents can buy and sell cryptocurrencies but the main prohibition is one crypto derivatives and auto-trading bots platforms. According to the country’s Financial Conduct Authority (FCA), the country is not in support of derivatives offering and has therefore banned the “sales and promotion of unregistered crypto products.” Interestingly, it seems that there might be some breath of fresh air concerning the crypto industry in the country considering the appointment of the new prime minister. So, if you are curious as to why the regulators may ease down the rigidity of cryptocurrencies, this detailed article will tell you all you need to know.
The Liz Truss Effect
Top of the list why the UK may cut down its hunt in cryptocurrencies is because of the new prime minister, Liz Trust. Before she became prime minister, Liz Truss openly supported the idea of cryptocurrency without regulation.
While this event happened far back in 2018, she had not hidden her love for innovation. Truss believes that cryptocurrencies are vital to keeping the UK prosperous and regulating them like every other industry could mean standing in the way of progress. So, now that she is at the forefront of leading the government, crypto investors can hope that she stays true to her word. If this happens, crypto platforms including Binance, and Bitcoin Loophole can operate without the fear of an abrupt shutdown.
A Stablecoin Bill
Apart from the Truss influence, the UK financial watchdog has also considered integrating stablecoins into its payment system. In a bill proposed to its legislative arm, the financial regulators seem to have seen the light with the power of these assets and how seamless the transactions can be. So, the FCA had welcomed the idea of issuing regulated stablecoins which allowed for normal usage by the average British Citizen. In addition, this bill, if approved, will be in line with the UK’s goal to be a global cryptocurrency hub. Still, expectant investors in the region may need to stay patient before making moves without restrictions.
The Cooperation of Crypto Platforms
If the crypto community were to record any success in this endeavour, then this is one aspect that should not be taken for granted. By now, both exchanges and broker platforms know that flouting the rules and regulation can lead to a permanent ban. Hence, cooperating with the laid down directives is vital if they hope to achieve their goals of prospering and adding big numbers to their already existing users. However, you may be wondering what kind of crypto platforms exist in the UK. While there are several of them, let’s talk about four crypto platforms that seem like the one ready to take advantage of an open opportunity if given.
Unlike the regular crypto trading exchanges, eToro is a unique kind of platform. While you can trade cryptocurrencies ranging from Bitcoin, Ethereum to Solana, eToro also offers stock trading. Compared to its competitors, eToro is one of the crypto platforms that has maintained a good stance with regulators in the UK. The fact that the platform also allows for the conversion of the British Pound to the US dollar with no charges is another reason why it tops the list.
eToro does not charge a deposit fee. Interestingly, the platform allows UK residents to learn trading by offering a $100,000 demo account at no charge. This reason is why the platform has been able to amass many users and why it could be one of the best beneficiaries of UK’s clampdown reduction.
Unlike the regular crypto exchanges, Bitcoin Loophole is a special kind of platform. While it is not a trading app itself, it helps users to access some of the best cryptocurrency brokers globally. Interestingly, this is one thing that many UK-based cryptocurrency enthusiasts prefer. If you are wondering why it’s special, here are a few pointers. First registration is 100% free on the platform. Secondly, the platforms provide beginners with a demo account to practice. So, if you’re a complete newbie, you have nothing to worry about. In relation to the UK regulations, Bitcoin Loophole ensures that it encourages users to follow the guidelines laid down by the FCA.
Bitstamp is another crypto platform that could take good advantage of the forthcoming UK crypt reforms. This is because the platform is one that offers one of the lowest trading fees in the region. It supports over 50 cryptocurrencies and charges only $0.25% in trading charges for transactions over 10,000 British pounds. In addition to these benefits mentioned above, Bitstamp has been cooperating with the crypto regulations by holding customers’ assets in safe wallets and insulting them.
Coinbase allows UK citizens to buy, and sell cryptocurrencies without any hassle. Coinbase offers its users the opportunity to buy over 250 cryptocurrencies, and for long, the platform has diligently followed the rules of the FCA despite having some troubles with the SEC in the United States.
Unlike Bitstamp and eToro, Coinbase trading fees are on the high side. Despite that, it is one of the most used crypto platforms in the country. Given that the UK slows down on its regulation rigidness, Coinbase is almost certain to reap the fruits of a crypto-friendly nation.
If you have been wondering what a “true” UK crypto platform looks like, then you should look towards Uphold. With over 100 cryptocurrencies, Uphold has been operating in the UK for quite a while. Over time, the platform has had extremely minimal problems with the FCA and other regulatory bodies. So, in case the UK makes the region more crypto-enabling, Uphold is certainly one of those that could gain massively from it.
For a long time, the UK has been one of the top countries that accepts revolutionary inventions. However, the strict rules on crypto trading may have been a necessary measure. You can point to the numerous scams and hacks that have recently flooded the ecosystem as part of the reasons. However, we can’t also deny that the region needs a freer crypto environment. With the regime of the new prime minister and compliance from the crypto companies, the UK can be a global hub for digital assets innovation.