Those who follow the UK crypto industry may recall that the UK government sent a positive message throughout 2023。

British Prime Minister Rishi Sunak said earlier this year at a London launch for Andreesen Horowitz, a venture capital firm that has invested heavily in cryptocurrencies, that he intends to "make the UK the Web3 hub of the world."。

A year or so before that, the British government announced its plan to "make the UK a global crypto asset technology and investment center."。

Targeting system use of stablecoins

In addition, the Bank of England recently issued lengthy regulatory recommendations aimed at safely enabling "systematic payment systems using stablecoins and related service providers," and stated that "stablecoins have the potential to be used by many people in the UK for day-to-day payments, and regulation has laid the foundation for safe, sustainable innovation in the currency and payments sector."。

different stories

With the addition of senior politicians and the Bank of England recognizing the disruptive shift brought about by distributed ledgers, a directional momentum is taking shape。In addition, these developments increase the likelihood that the UK will compete effectively with the EU and its new continent-wide regulatory framework for the crypto industry, MiCA.。However, while all this is happening, some actual cryptocurrency users in the UK may have experienced another story。

For Brits who interact with cryptocurrencies through centralized platforms, the up-and-down channel between cryptocurrencies and fiat currencies is crucial, and this year they have fewer and fewer options, including PayPal, Luno, Bybit and KuCoin. Some major companies have stopped some services.。Now, as this trend develops, there is news that digital bank Revolut will suspend some of its cryptocurrency services in the UK.。

What happened to Revolut?？

According to an email sent by Revolut to its corporate customers, the popular banking platform will temporarily stop the ability of British Revolut corporate customers to buy cryptocurrency, with the changes coming into effect on January 3, 2024.。Holding and selling cryptocurrencies is still allowed, and these changes will not affect Revolut retail customers, who can still buy, sell and hold cryptocurrencies as usual.。

As to why it is doing this, Revolut said it is because the UK's Financial Conduct Authority (FCA) has introduced new regulatory requirements for crypto asset investments, which will take effect from January 8.。As a result, Revolut said in an email to business customers: "We need to adapt our current business encryption products to ensure that all new requirements are met.。"

Since October, all companies promoting crypto assets to retail consumers must register with the FCA, and the FCA stated in a summary of the new crypto rules published in November: "The core requirement of our financial promotion rules is that financial promotions must be fair, clear and not misleading."。

From here, the FCA's guidelines are intensive and far-reaching, including stablecoins and revenue-generating assets, and may create a huge obstacle for cryptocurrency companies interested in doing business in the UK, as the cryptocurrency industry tends to amplify the "move fast, break the rules" technology slogan to 11 times, rather than providing clearly verifiable proof of function before launch.。

As a result, any company offering crypto asset investments is likely to need more time to ensure that it is fully compliant with the FCA's new regulatory requirements, so the question now is how the UK crypto industry will position itself in a few months "time.。

Phased twists and turns？

Notably, Revolut highlighted the temporary nature of its halt to cryptocurrency trading, referring only to it as a "moratorium," and outlined its ongoing efforts to ensure regulatory compliance.。More importantly, the FCA does not simply bundle cryptocurrencies with existing rules, which may not be compatible with new asset classes.。For a glimpse into the legal battle over the latter approach, take a look at the US Securities and Exchange Commission (SEC) on the other side of the Atlantic and its ongoing conflict with US cryptocurrency companies, as the SEC insists that traditional securities laws can incorporate cryptocurrencies.。

In contrast, the FCA, like the EU's MiCA mentioned above, is developing new guidance and seems willing to consider cryptocurrencies on its own terms.。This shows that the cryptocurrency industry and its peculiarities have been accepted, but it also shows that the implementation of some kind of regulation has become a priority.。

One interpretation of a range of companies currently forced to suspend some UK cryptocurrency services is that this is not because the FCA's rules are too harsh or inherently unworkable, but because the deadline set by the new guidance to ensure compliance is too short.。

As a result, 2024 has the potential to be a big year for blockchain development, and while things are still changing in the UK, cryptocurrency operators will work hard to ensure that bumps in the road can precipitate into smoother highways.。