The UK government’s regulations on cryptocurrency companies may lead foreign companies to leave the country.
Cryptocurrency rules to be implemented in the UK, local or foreign It will be valid for all companies without discrimination.
Lawyers speaking to Coindesk say that may be negative for foreign companies he thinks.
Traditional financial institutions in the country have direct access to funds in the UK thanks to OPE (overseas persons exclusions). service despite not having authority can give. An authorized person for this “with or through” They need to work.
However, this right will not be granted to cryptocurrency companies. Albert Weatherill, a partner at the law firm Norton Rose Fulbright. “The removal of OPE was, in my opinion, a blow to the industry.” said.
The government does not want to include cryptocurrency firms because “conditions in crypto asset markets are not the same as those in traditional financial products that OPE currently covers.”
The government’s stance is that cryptocurrency firms serving customers in the UK of allto operate competently in the country, regardless of where their headquarters are.
Cryptocurrency companies will have to open a branch in the UK if they want to serve this market. However, according to Weatherill, companies “not worth the trouble” may think:
“If you’re a very active exchange in Asia, your customer base isn’t normally (in the UK) but you have a lot of liquidity, why would you want to open a branch here if you’re going to have to deal with building a brand, hiring people and so on?”