Businesses trying to break out of the rigorous rules of the European Union’s Markets in Crypto-Assets Regulation (MiCA) find the terrain of bitcoin regulation in the United Kingdom intriguing yet unknown. Though some analysts believe that businesses fleeing MiCA would cause a transitory migration to the UK, the reality of the UK’s legal system may discourage many.
Chief compliance officer of Zodia Custody, Sophie Bowler, expects the pressures of MiCA to cause businesses from the EU to migrate temporarily from the EU to the UK. Other executives, like those from the self-regulatory trade group CryptoUK from the United Kingdom, have doubts about this shift, though.
Director of public policy at Merkle Science Natalia Latka highlights the weight MiCA’s strict criteria place on international crypto asset service providers and stablecoin issuers. She points out that following these rules’ expenses and complexity might force businesses to think about moving. She does, however, wonder whether the UK really presents a beneficial substitute given its own legal difficulties and unclear operating structure.
Latka notes that given the long registration procedure with the Financial Conduct Authority, the phased approach to UK crypto control adds a degree of uncertainty. This raises concerns about potential reluctance among companies to relocate to the UK, especially in light of recent regulatory delays linked to political developments.
Su Carpenter, executive director of CryptoUK, underscores that the ongoing uncertainty surrounding the UK’s legal system may discourage companies from relocating. Although regulatory consultations have improved, he points out that the new Labour administration has not given any clear direction for the digital asset industry.
Carpenter contends that the UK’s legal system is unlikely to exactly reflect MiCA and that it will have to adapt to fit the fast-changing crypto scene. He concludes that only if the UK clarifies its own laws can MiCA attract companies seeking a more favorable legal environment.
