No License, No Crypto: UK’s New Law Makes Bitcoin, Staking, and Exchanges Illegal Overnight

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In a historical step, the UK government has published a draft encryption legislation that formally integrates encryption into the traditional financial system. Not everyone will celebrate.

The 2000 financial services and financial markets law (Cryptoassets) (Cryptoassets) is 2025 aggressive frameworks, making encryption trading platforms, stablecoin exporters, guardians, and service providers owned by financial activities.

The companies concerned now will require full permission from the FCA – or illegally operating risk.

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Keir Starmer’s Crypto Power GRAB: London set identical to the encryption industry

At the heart of the new law is power and control. The government puts London as a serious player in the global encryption stage – undoubtedly in a reaction to a shift in the US government policy, but by doing this, it leads to great concerns about monitoring, cost barriers and suffocation of innovation.

At the core of the bill there are several new measures. Here is what is important in the draft:

  • Encryption You should become licensed like stock exchanges.
  • Stablecoin exporters It will be dealt with, such as banks and money market boxes.
  • Guards He will face strict protection rules (especially for user portfolios and special keys).
  • Service providers (Even decentralized deception models) should be registered under a special new framework.

Decally, the legislation also extends the United Kingdom’s jurisdiction at the international level. If a foreign encryption platform provides services to a British consumer indirectly, it can now be followed under the UK law.

This ruling “which was considered in the United Kingdom” can radically change how global encryption companies work – or simply force many to prevent British users completely, reflecting what happened in the United States

Meanwhile, the definition of “encryption assets” is amazingly wide, and covers almost all digital symbols except for loyalty points, game assets or non -convertible NFT. Everything else, from Bitcoin to Defi Tokens, is located inside the network.

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The new UK encryption bill raises controversy

The proposed new legislation contains several controversial points, which already causes complaining of encryption entities.

  • Staking Dragnet: Even the minimum processes that can lead to complete organization, and which is likely to kneel Defi in Britain.
  • Stablecoin support: Any metal reference currency should follow the heavy “assets of support” rules, which can be a potential nightmare for algorithm and hybrid models.
  • Innovation freezing warning: The smaller cryptocurrency companies may abandon the UK market instead of moving in a mountain of obstacles.

Despite the change in the political leadership with the Labor Party, which replaces the conservatives, the new government committed to complete the plans of the “encryption asset system” in almost the entire previous system, without any new position or reconsideration.

Why do it concern: This is not just another boring organizational modernization – it is the beginning of the UK’s attempt to control “organized encryption” worldwide. However, by locking industry in old financial rules, Britain may also deceive the web 3 revolution that it hopes to host.

In general, the UK’s encryption suppression is a double -edged sword, and provides legitimacy on the one hand and organizational strangulation on the other hand. Curd companies all over the world are now on a notification: adaptation, compliance, or leaving Britain.

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The post No License, No Crypto: The new UK law makes Bitcoin and Stokeing, and illegal exchange during the night first appeared on 99bitcoins.

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