Blockchain

UK Treasury wants to remove blockchain reference from crypto definition

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The UK is actively seeking to regulate the crypto market and has proposed a number of new policies to bring various crypto markets under the rule of law. However, among the various new proposals that have drawn many attention is a request to remove references to blockchain and distributed ledger technology (DLT) from the definition of cryptoassets.

a new cryptocurrency Report The UK Treasury’s article titled “Crypto Asset Promotion: Consultation Response” states that while most crypto assets use DLT or blockchain as the underlying technology, it may change as the industry evolves. As such, cryptoassets must be exempt from reference to DLT to be “definition of future-proof innovation.” The official statement said:

“Most crypto-assets currently use distributed ledger technology (DLT), which may change as technology and the industry evolves. Therefore, the government proposes to remove references to DLT from the definition of eligible crypto-assets.”

related: UK ETH ownership ranks third as crypto adoption grows 1% in December: survey

In addition to the contentious change to the definition of crypto assets, the UK Treasury document discusses bringing decentralized finance (DeFi) into regulation on a case-by-case basis, and says the government will keep a close eye on the fast-growing industry. The official document reads:

“Whether certain crypto-asset lending activities or decentralized finance platforms are within the scope of the regime ultimately depends on the activities being undertaken and promoted. Therefore, this needs to be considered on a case-by-case basis.”

Many cryptocurrency proponents believe that the committee’s proposed removal of blockchain and DLT references could be dangerous to the decentralized nature of the cryptocurrency market. For example, China CBDC e-CNY or digital yuan It is said to be based on blockchain technology, however, it is more like a private blockchain, highly centralized and controlled by the government. The UK government appears to be following a similar path, changing the definition.