EU’s Bitcoin regime ‘too restrictive’ as Brexit Britain told to capitalise on crypto – Express

Reports are suggesting that Bitcoin could be boosted as Russians turn to crypto to avoid the West's sanctions on their country. Russian forces are a week into their invasion of Ukraine, and Western leaders have isolated Moscow with hard sanctions, which will have a big impact on the country's economy. Trading data suggests that Russians are increasingly turning to digital assets to avoid the Western sanctions. According to Kaiko, a firm that analyses crypto markets, trading volumes between the Russian rouble and tether, a leading cryptocurrency, hit a record high on Monday.

Crypto and blockchain technology remains a polarising concept, with critics raising concern about the unregulated nature of assets such as Bitcoin.

But those who support crypto technology believe it can revolutionise the way markets work for the better.

Matt Hancock, MP for West Suffolk, has been a vocal voice in Parliament backing the use of crypto.

Speaking to the Citywire Wealthtech Show on Friday, Mr Hancock argued that other leaders, such as those in the EU have been too restrictive on crypto and Fintech.

He said: Innovation is the way we build the future of people's prosperity, that is the big picture. I was listening to a debate in Parliament and I thought, 'we need to be more positive, we need to be more energetic'.

"These innovations are going to happen, so let's have them happen here. It's that sort of attitude which is the right one for the UK to take."

On the EU's approach to new technologies, he added: "The EU is clearly moving in this space, and is proposing a regulatory regime which I think is too restrictive.

"In buying risk assets, crypto that isn't anchored for instance, we should allow people to buy and trade this stuff. That is a liberal regime.

"Yes there needs to be some standards around this stuff, for instance advertising and tackling money laundering.

"There is an attitude in some parts of the world and in the UK that we should only let sophisticated investors near this stuff because you can lose money.

Well, you can lose money buying equities, so let's treat this asset class in a way that is open to investment and allows people to make choices for themselves."

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In January, one of the EU's leading financial regulators said the EU should ban the energy-intensive system used to mine Bitcoin.

In an interview with the Financial Times, vice-chair of the European Securities and Markets Authority (ESMA) Erik Theden called for a bloc-wide ban on "proof of work" crypto mining, saying the industry's energy usage was becoming a "national issue" in his native Sweden.

He said: "Bitcoin is now a national issue for Sweden because of the amount of renewable energy devoted to mining.

"It would be an irony if the wind power generated on Swedens long coastline would be devoted to Bitcoin mining."

Meanwhile, Mr Hancock told Express.co.uk he would consider investing in Bitcoin.

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He also argued that the cryptocurrency could play a role in a post-Brexit economy.

When asked if crypto can play a role in a post-Brexit economy, Mr Hancock said: "Yes. We now dont have to just take the EUs restrictive regulatory regime and instead can design our own that is more dynamic."

He added: "Crypto is already here and in use. Its expanding rapidly in the UK and around the world. We dont have a choice as to whether it is happening. The choice we have is how we shape it best to benefit people.

"Britain has long prospered by being the home of financial innovation. Hundreds of years ago, we were the first place in the world to establish a central bank.

"In the Eighties, we pioneered the eurobond market, and we have been the leading place in the world to trade currency for decades. So it is natural that with a liberal regulatory system we should be the home to cryptocurrencies too."

Express.co.uk does not offer financial advice. The journalists who worked on this story do not own crypto.

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EU's Bitcoin regime 'too restrictive' as Brexit Britain told to capitalise on crypto - Express