Crypto: Why UK Prime Minister Rishi Sunak Could Threaten France’s Plans

While Bruno Le Maire wants to make France the European “hub” of cryptocurrencies, he will have to deal with the arrival of the new pro-crypto British Prime Minister Rishi Sunak.

Since Brexit, Paris and London have been in fierce competition to be the European capital of finance. The crypto ecosystem, more developed in the United States and London, is establishing a solid base in France with the rise of crypto-companies and growing interest from investors.

Last Monday, the Minister of Economy and Finance Bruno Le Maire declared that he wanted to make France the first “European” hub of cryptocurrencies. He also wants to make France the “base camp” in Europe for cryptocurrencies and decentralized finance (DeFi). But he will have to face a strong competitor: Rishi Sunak, the new British Prime Minister, who has already shown his support for the crypto ecosystem.

“It’s a positive for crypto”

On Monday, Rishi Sunak became British Prime Minister, succeeding Liz Truss. His appointment was well received by the UK crypto ecosystem. “It’s a positive for crypto and the general economy,” CryptoUK lobby manager Ian Taylor told Reuters. CoinDesk.

Minister of Finance under Boris Johnson, he declared in April that he wanted to make the United Kingdom the world “hub” for cryptocurrencies, announcing a whole series of measurements in this sense.

“My ambition is to make the UK a global hub for crypto-asset technology, and the measures we have outlined today will help ensure businesses can invest, innovate and grow in our country,” Rishi said. Sunak.

Stablecoins: a means of payment?

In favor of effective regulation, the latter intends to “give confidence” to companies in the crypto ecosystem, so as to “invest for the long term”. Among the measures proposed by the British government, a door on stablecoins, cryptocurrencies backed by a fiat currency (euro, dollars etc.).

“With appropriate regulation, stablecoins could be a more efficient means of payment and increase consumer choice,” said the British government, which intends to bring stablecoins into the regulatory field of payments.

The UK government also wants to improve “the competitiveness of the UK tax system to encourage the further development of the UK crypto-asset market”. It is in this sense that he wants to focus on loans in decentralized finance (DeFi) “are treated for tax purposes”

“Broad power over the crypto industry”

If the government’s Cryptocurrency Bill is passed, it “could give local regulators sweeping power over the crypto industry – starting with bringing crypto linked to assets like stablecoins into the fold.” application of payment regulations”, points out CoinDesk.

Cryptocurrencies as regulated financial products

On Tuesday, British lawmakers voted to recognize cryptocurrencies as regulated financial products in the country, which was one of the amendments proposed by MP Andrew Griffith to the bill.

“Treasury will consult with industry and stakeholders on its approach before using powers to ensure the framework reflects the unique benefits and risks posed by crypto business,” the latter said.

Before coming into force, the bill will still have to go through the House of Lords and the Upper House of Parliament, then through a final review followed by approval by King Charles III.

To date, while the MiCa (Market in Crypto Assets) regulation should provide a framework for Europe from 2024, the United Kingdom is far from having adopted such regulations. In 2019, the British regulator, the Financial Conduct Authority (FCA), published a report on cryptocurrencies, considering that while crypto companies could fall within the scope of payment services regulation, tokens should not be regulated in any way. their side.

Since Rishi Sunak statements, the crypto ecosystem has been through crypto crashes who have reshuffled the cards, not only in the stablecoin sector, but also by weakening certain companies that are now bankrupt, such as Celsius and Nuri. The first speech on the crypto ecosystem as Prime Minister will be closely followed by the British crypto ecosystem, but also the French.

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Crypto: Why UK Prime Minister Rishi Sunak Could Threaten France’s Plans


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