TY - JOUR

T1 - Crypto Assets Regulation in the UK: An Assessment of the Regulatory Effectiveness and Consistency

AU - Huang, Sherena

N1 - no embargo upon publication

PY - 2021/7/14

Y1 - 2021/7/14

N2 - The UK authority published its first regulatory guidance on crypto-assets in July 2019. This paper aims to critically evaluate the effectiveness of the crypto-asset regulation in the UK and the consistency of the existing regulatory scheme.This paper adopts comparative methods to carry out the analysis. The paper begins by elaborating on the development of crypto-assets alongside the financial innovation in the world and pinpointing the core Acts and Regulations applied to crypto-assets in the UK. The paper also discusses a court case in the EU to highlight an argument among legal professions concerning crypto-assets classification. Through carefully analysing relevant primary and secondary legislation of the UK and EU, this paper identifies some unclarified issues in the regulatory framework and discovers three flaws in the regulatory system. The paper concludes that the effectiveness of the current regulatory scheme is poor and room for improvement exists.The paper provides the first review and a thorough analysis of the Laws and Acts applied to the crypto-asset regulation in the UK. It also calls on a simpler and clearer regulatory scheme from the perspectives of market participants and consumers. The discovered issues in the crypto-asset regulation in the UK may urge authorities to improve the existing regulatory frameworks and legal provisions.

AB - The UK authority published its first regulatory guidance on crypto-assets in July 2019. This paper aims to critically evaluate the effectiveness of the crypto-asset regulation in the UK and the consistency of the existing regulatory scheme.This paper adopts comparative methods to carry out the analysis. The paper begins by elaborating on the development of crypto-assets alongside the financial innovation in the world and pinpointing the core Acts and Regulations applied to crypto-assets in the UK. The paper also discusses a court case in the EU to highlight an argument among legal professions concerning crypto-assets classification. Through carefully analysing relevant primary and secondary legislation of the UK and EU, this paper identifies some unclarified issues in the regulatory framework and discovers three flaws in the regulatory system. The paper concludes that the effectiveness of the current regulatory scheme is poor and room for improvement exists.The paper provides the first review and a thorough analysis of the Laws and Acts applied to the crypto-asset regulation in the UK. It also calls on a simpler and clearer regulatory scheme from the perspectives of market participants and consumers. The discovered issues in the crypto-asset regulation in the UK may urge authorities to improve the existing regulatory frameworks and legal provisions.

KW - Bitcoin

KW - Crypto-assets regulation

KW - Cryptocurrency

KW - FinTech

U2 - 10.1108/JFRC-06-2020-0062

DO - 10.1108/JFRC-06-2020-0062

M3 - Article

VL - 29

SP - 336

EP - 351

JO - Journal of Financial Regulation and Compliance

JF - Journal of Financial Regulation and Compliance

SN - 1358-1988

IS - 3

ER -