CNBC reported that Britain may introduce laws to regulate the cryptocurrency industry within the next year.
In February, the U.K. Government released its plans to regulate crypto-assets and invited consultation. Consultation period ends April. 30.
Andrew Griffith, the economic secretary of the U.K. Treasury said in a Monday interview that a specific crypto regulation might come into effect within 1-2 years.
Griffith, speaking about Britain's departure from the European Union, told CNBC: "We have control of our rulebook back, something that the U.K. had not enjoyed for decades."
We can move quickly and efficiently. "I'm keen to make the most out of this opportunity."
From Dubai to Singapore, jurisdictions have tried to promote themselves as crypto-friendly locations to encourage companies to set up shops there.
The U.S. has taken a tough line against cryptocurrency companies, with its regulators increasing enforcement actions against these firms.
Britain wants to be a destination for crypto companies. Rishi Sunak (then U.K. Finance Minister and now Prime Minister) said last year that he wanted to make Britain "a global hub for cryptoasset technologies."
The U.K. wants to introduce legislation that will regulate the cryptocurrency market as it aims to become a global hub for cryptoassets.
CNBC reported that crypto companies want clear rules and push governments to create frameworks to allow them to operate. The Securities and Exchange Commission in the U.S. has targeted cryptocurrency firms using existing securities laws.
Griffith stated that the U.K. regulatory approach will mix existing regulations with new ones.
"We want the same asset and transaction to be regulated the same way wherever possible." There are also some opportunities to be had in the space of crypto assets or distributed ledgers, and we would like to make use of them," Griffith told CNBC.
As an example, the lawmaker cited the Financial Services and Markets Bill that is currently making its way through parliament as a future legislation which already contains some provisions about cryptocurrency. This specific law is still not in effect, but aims to regulate asset-backed stablecoins.
Stablecoins, a type cryptocurrency, are designed to mimic real-world assets like the U.S. Dollar. They are usually backed up by real assets, such as bonds and fiat currencies.
The distributed ledger, also known as blockchain, is a collection of records that do not belong to a single entity. They can be updated and shared at the same moment to ensure accuracy by all parties involved in the transaction.