The United Kingdom, in particular, is attempting to supervise cryptocurrency and the decentralized finances sector as a whole. Regulators have also suggested removing references to blockchain from the definition of crypto assets, but they haven’t specified how yet.
In addition to crypto-assets, decentralized finance is also under examination, however, DeFi assets will be handled on a “case-by-case basis” instead of a one-size-fits-all regulatory framework.
The purpose for the further regulations is a lack of information and fraudulent marketing, which poses a danger to customers who use blockchain-related services and applications.
BRITAIN SAYS DECENTRALISED FINANCE (DEFI) MAY BE IN SCOPE OF REGULATION, BUT WILL NEED TO BE CONSIDERED ON A CASE BY CASE BASIS
BRITAIN SAYS MISLEADING ADVERTISING AND LACK OF INFORMATION MEANS THERE ARE CONSUMER RISKS PRESENT IN CRYPTO MARKET
— *Walter Bloomberg (@DeItaone) January 18, 2022
It’s not completely clear yet what regulators mean when they talk about removing the term “blockchain” from the definition of cryptocurrency assets since the technologies are so linked.