{"id":2102,"date":"2023-03-13T05:14:48","date_gmt":"2023-03-13T05:14:48","guid":{"rendered":"https:\/\/digitalcoinprice.com\/blog\/?p=2102"},"modified":"2023-03-30T11:39:48","modified_gmt":"2023-03-30T11:39:48","slug":"the-challenges-hurdles-that-be-overcome","status":"publish","type":"post","link":"https:\/\/digitalcoinprice.com\/blog\/the-challenges-hurdles-that-be-overcome","title":{"rendered":"Cryptocurrencies in the UK: The Challenges and the Hurdles That Need to Be Overcome"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #223c50;color:#223c50\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #223c50;color:#223c50\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-challenges-hurdles-that-be-overcome\/#Assessing_Cryptocurrency_Usage_in_the_UK\" title=\"Assessing Cryptocurrency Usage in the UK:\">Assessing Cryptocurrency Usage in the UK:<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-challenges-hurdles-that-be-overcome\/#Building_a_Digital_Economy\" title=\"Building a Digital Economy\u00a0\">Building a Digital Economy\u00a0<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-challenges-hurdles-that-be-overcome\/#Putting_Plans_in_Place\" title=\"Putting Plans in Place\">Putting Plans in Place<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-challenges-hurdles-that-be-overcome\/#Barriers_to_a_Crypto_Takeover\" title=\"Barriers to a Crypto Takeover\">Barriers to a Crypto Takeover<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/digitalcoinprice.com\/blog\/the-challenges-hurdles-that-be-overcome\/#Attractiveness_of_Crypto\" title=\"Attractiveness of Crypto\">Attractiveness of Crypto<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Cryptocurrencies have been around for over a decade, and while they have entered the public consciousness in the UK, and are coming into increasing circulation, there is still a grave fear about them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We will have all heard of Bitcoin and Litecoin, but cryptocurrencies are known for being wildly volatile, and they have experienced some instability over the past 12 months.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The UK isn\u2019t the only country facing the dilemma of how to safely introduce and regulate cryptocurrencies, with <\/span><a href=\"https:\/\/digitalcoinprice.com\/blog\/crypto-struggles-payment-option-dutch\"><span style=\"font-weight: 400;\">the Netherlands also facing similar challenges<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But what is the current legal framework for cryptocurrencies in the UK? What is the typical usage? And what are the hurdles that need to be overcome? All of this and more will be discussed in our comprehensive guide.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Assessing_Cryptocurrency_Usage_in_the_UK\"><\/span><strong>Assessing Cryptocurrency Usage in the UK:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Cryptocurrency usage has shot up in the past few years. A survey last month revealed that approximately <\/span><span style=\"font-weight: 400;\">1.5 million people owned c<\/span><span style=\"font-weight: 400;\">r<\/span><span style=\"font-weight: 400;\">ypto assets in the UK<\/span><span style=\"font-weight: 400;\">, compared to 9.8 million in 2021.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Dogecoin was also widely adopted, and it supposedly has the fourth-highest ownership rate at 17%. Overall, in the three years between 2018 and 2021, cryptocurrency increased by an astonishing rate \u2013 650%.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Building_a_Digital_Economy\"><\/span><strong>Building a Digital Economy\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As things stand, there is no tangible legal framework in place to regulate the flow of cryptocurrencies in the UK. The downfall of FTX last year, which resulted in the arrest of its founder, served as a painful reminder of how tighter restrictions need to be put in place, especially when billions of dollars were lost by investors, some of which emanated in Britain.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There have been suggestions that we could still be some way away from a digital pound being incorporated. A senior bank official recently admitted that a <\/span><a href=\"https:\/\/www.forbes.com\/uk\/advisor\/investing\/2023\/03\/01\/cryptocurrency-updates\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">digital pound could still be five years away<\/span><\/a><span style=\"font-weight: 400;\">, but whether it materializes remains to be seen.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For some months, a central bank digital currency (CBDC) has been in the pipeline and the Treasury has been consulting the issues, and it is seen as a natural trajectory for the rise of cryptocurrencies. However, the government has made it clear that cryptocurrencies and legislation referring to them should be robust.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Putting_Plans_in_Place\"><\/span><strong>Putting Plans in Place<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Progress with regulating cryptocurrencies is very much at a preliminary stage, although there are draft plans that are being worked on. This was outlined by <\/span><a href=\"https:\/\/www.reuters.com\/technology\/britains-finance-ministry-sets-out-draft-rules-regulate-cryptoassets-2023-02-01\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Financial Services Minister Andrew Griffith<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He said: \u201cOur view is that this [FDX] reinforces the case for clear, effective, timely regulation and proactive engagement with industry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThis includes a proposal to bring centralised crypto asset exchanges into financial services regulation for the first time, as well as other core activities like custody and lending.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although nothing has been finalised, it is thought that the new rules would cover crypto-related admission to a trading platform, and mitigate any potential safety risks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The rules, should they become effected, would cover crypto firms in Britain or those that provide services to UK-based firms. To qualify, firms would need to have a license, as well as meet the minimum capital and liquidity requirements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And then it would be up to the Financial Conduct Authority (FCA) to decide whether a foreign operator would need to have a tangible presence in the UK.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Barriers_to_a_Crypto_Takeover\"><\/span><strong>Barriers to a Crypto Takeover<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">At various stages, there are underlying issues with cryptocurrency. The first of which is that the security of crypto assets can be breached. Such attacks can cause transactions to be paused, and prevent miners from verifying blocks, which in turn, can cause a double spend of coins. As we have seen, cryptocurrencies can be highly volatile, which can cause much uncertainty in the market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Indeed, there are several potential hurdles to be overcome before a full crypto takeover occurs in the UK. Of course, regulation is paramount and having a fully robust system in place to deal with the financial rigours is of course paramount, or else it could go pear-shaped quite quickly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are a few companies in the car manufacturing world that have opened themselves up to crypto, such as Renault, who have been told they will be forced out of the UK if they don\u2019t wind down their crypto activities as they need authorization from the FCA.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, many industries have yet to fully appreciate the effectiveness of crypto. This can be applied to the health and retail industries, where other traditional forms of payments, such as credit and debit cards, and even e-wallets, such as PayPal are preferred.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While the online gambling world has slowly started to accept cryptocurrencies as a payment method, it isn\u2019t the case for all digital casinos. Most of the top casinos in the UK, including the ones listed at <\/span><a href=\"https:\/\/www.online-slot.co.uk\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">online-slot.co.uk<\/span><\/a><span style=\"font-weight: 400;\">, are yet to embrace cryptocurrencies. This is also the case for the likes of LeoVegas Casino and Duelz Casino.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Attractiveness_of_Crypto\"><\/span><strong>Attractiveness of Crypto<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">That said, crypto comes with a variety of benefits that make it inherently attractive. One of which is the transactional speed. It is extremely convenient, and whereas some methods may take up to three to five business days to send money to friends and family, cryptocurrencies can process payments within 24 hours.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The diversity of cryptocurrency also makes it an attractive proposition. It provides a fine source of a portfolio of diversification, especially for those who like to play stock markets and would rather move away from the standard stocks and bonds out there. There are things that cryptocurrencies are doing well with right now, and it is important to look at the bigger picture before investing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Above all else, the privacy afforded by cryptocurrencies makes it appealing. Any transactions made on the blockchain will be pseudonymous, and your financial data won\u2019t be shared with third parties.<\/span><\/p>\n<h4><b>Bottom Line<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Crypto clearly still has a few hurdles to clear before it is embraced by the government, and regulators may have to take a different approach rather than just shrug their shoulders. It is possible to envision a future for crypto in the UK, but only time will tell as to how it will evolve.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cryptocurrencies have been around for over a decade, and while they have entered the public consciousness in the UK, and are coming into increasing circulation, there is still a grave fear about them. We will have all heard of Bitcoin and Litecoin, but cryptocurrencies are known for being wildly volatile, and they have experienced some [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2103,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-2102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin"],"_links":{"self":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/2102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/comments?post=2102"}],"version-history":[{"count":10,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/2102\/revisions"}],"predecessor-version":[{"id":2637,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/2102\/revisions\/2637"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media\/2103"}],"wp:attachment":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media?parent=2102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/categories?post=2102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/tags?post=2102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}