UK Treasury Could Remove Blockchain Reference From Crypto Definition

The UK treasury could remove Blockchain reference from the crypto definition in the new set of regulatory proposals that aim to bring DEFI under the scope of the law on a case-to-case basis as well so let’s read further in our latest blockchain news.

The UK treasury could remove the reference of blockchain from the crypto definition as the regulator is actively looking to regulate the market by proposing a lot of new policies that can bring crypto markets under the rule of law. Among the proposals was the goal to remove blockchain and DLT references from the definition of crypto assets. The reports show that most crypto assets use DLT or blockchain as the underlying technology which could change over time as the industry expands. Crypto assets have to be exempt from DLT reference to “future-proof the definition for innovations.” The statement reads:

“Most crypto assets currently use distributed ledger technology (DLT), it might be that this changes as the technology and industry evolve. Therefore, the government proposes to remove the reference to DLT from the definition of qualifying crypto assets. “

BRITAIN SETS OUT PLANS FOR REGULATING CRYPTO ASSETS, PROPOSES TO REMOVE REFERENCE TO BLOCKCHAIN FROM THE DEFINITION OF CRYPTO ASSETS

— *Walter Bloomberg (@DeItaone) January 18, 2022

Apart from the controversial crypto-asset definition change, the HM Treasury paper outlined bringing DEFI under the scope of regulation on a case to case basis and also noted that the government will monitor the industry closely:

“Whether certain crypto assets’ lending activities or decentralized finance platforms are within the scope of the regime ultimately depends on the activities being carried out and promoted. As such, this will need to be considered on a case-by-case basis.”

Most crypto proponents believe that the removal of blockchain references could endanger the decentralized nature of the crypto market. The Chinese CBDC e-CNY or digital yuan will also be based on blockchain technology but it is more of a private blockchain that is centralized and government-controlled. The British government could now do the same with the definition change.

The UK Treasury and the Bank of England have launched a CBDC taskforce to coordinate the exploration of CBDC while UK is still one of the few countries that consider launching its own CBDC like China and Japan. Both entities launched a task force to coordinate the exploration of the central bank’s digital currencies as per a statement.