Matthew Elderfield: EU and UK approach crypto regulation too differently

The ex-deputy chairman of the European Banking Authority shared his opinion on the situation with the regulation of the cryptocurrency market in the European Union and the UK that left it.

Matthew Elderfield says that disagreements between the EU and the UK are now beginning to emerge as far as the regulation of the cryptocurrency industry is concerned. The UK Parliament is preparing a bill on financial services and the market, British regulators are developing new rules for high-risk investments. At the same time, there are rules for regulating crypto-asset markets (MiCa) in Europe.

The UK plans to start by regulating several crypto assets and service providers, while the EU is finalizing wide-ranging rules for assets and any companies operating in the industry. According to Elderfield, in comparison with the European Union, British regulators have just begun to master the fast-growing industry. The EU authorities are counting on large investments and are ready to regulate new crypto assets and crypto companies.

Differences in UK and EU regulations also apply to service providers: Britain is aiming for fewer crypto services such as storage and exchange, while the EU is trying to cover many aspects of the industry – crypto trading, order transfer and other crypto services.

The divergence in approach to regulation could have a negative impact on crypto companies wishing to operate in both the eurozone and the UK. This will make it much more difficult to obtain licenses in both jurisdictions, Elderfield said.

Earlier, the UK Inter-Party Parliamentary Group (APPG) said it was going to study the views of stakeholders on the oversight of digital assets. To do this, the parliamentary group plans to interview crypto exchange operators, industry experts, as well as representatives of state financial institutions and regulators.