The United Kingdom has announced cryptocurrency legislation, in alignment with the United States.

* The United Kingdom synchronizes cryptocurrency regulations with the United States to enhance global integration.

• The leadership of the United States in Bitcoin reserves encourages countries like Switzerland to consider adding Bitcoin to their national reserves.

The emergence of Donald Trump as the 47th president of the United States has significantly changed the cryptocurrency landscape, bringing stronger support for digital assets.

This change not only helps the United States recover from its previous restrictive approach but also creates a ripple effect in other countries, encouraging them to embrace the developing industry.

A notable example is the United Kingdom, preparing to bring cryptocurrency into mandatory regulation.

The United Kingdom learns from the United States

Finance Minister Rachel Reeves confirmed that the new draft laws will expand existing financial regulations for cryptocurrency companies, aligning the UK's approach with that of the United States rather than the European Union.

With two countries preparing to collaborate on shaping regulations for cryptocurrency, this move marks a significant turning point in the acceptance and integration of cryptocurrency globally.

The Ministry of Finance noted after Reeves' announcement,

"Under the new regulations, cryptocurrency exchanges, brokers, and dealers will be brought under the regulatory scope – preventing illegal activities while supporting legitimate innovation. Cryptocurrency companies with customers in the United Kingdom will also have to meet clear standards regarding transparency, consumer protection, and operational sustainability."

The Role of the United Kingdom in Accepting Cryptocurrency

According to a new report from Chainalysis, Central and South Asia along with Oceania topped the 2024 index, with seven of the top 20 countries from this region, and the United Kingdom ranked 12th.

Notably, around 12% of adults in the UK currently own or have owned cryptocurrencies such as Bitcoin [BTC] or Ethereum [ETH], a significant increase from just 4% in 2021.

Despite this tension, Bank of England Governor Andrew Bailey has repeatedly warned about the risks of Bitcoin, emphasizing that it cannot be considered a safe store of value like traditional currencies.

However, he acknowledged the need for regulations regarding stablecoins, a type of digital currency designed to maintain a fixed value against assets such as the USD.

Challenges of the United Kingdom

This comes at a time when industry leaders are warning that the United Kingdom is at risk of losing its status as a center for fintech and cryptocurrency innovation due to an increasingly stringent regulatory environment.

According to these executives, the country's regulatory agency has taken an overly strict stance when registering new companies.

They also pointed out that the pension funds managing trillions of pounds are becoming overly cautious, further dampening growth in this sector.

This cautious approach is seen as a barrier for emerging companies and investors, which may force them to seek more welcoming innovation hubs.

Furthermore, what is happening?

Nevertheless, the influence of the United States in shaping global cryptocurrency policy remains significant, serving as an inspiration for many countries.

In fact, with the United States leading in establishing Bitcoin reserves, other countries have begun to follow suit.

For example, Switzerland has now joined the discussion and is considering adding Bitcoin to its national reserve fund.

This transition reflects the growing recognition of Bitcoin as a legitimate asset and further highlights how the United States sets a precedent that other countries are eager to adopt.

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