If I set up an X account and called it WhyYouNeedNostr&Bitcoin (or similar) and regularly posted measured, common sense replies highlighting the two where it’s needed, will it be banned? Also, those of you who are still using that platform, are you actively doing this? If so, is it a hostile environment / reception?
The UK. “We are pro innovation…”
The specific UK regulations currently preventing full operation of Bitcoin apps like Relai, Strike, and Cash App are mainly from the draft Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 amendments and FCA rules, which include:
- Authorisation Requirement: Firms operating cryptoasset trading platforms, dealing in qualifying cryptoassets as principal or agent, or arranging deals in qualifying cryptoassets must be authorised by the FCA to serve UK retail customers, regardless of whether they are UK-based or overseas.
- Geographic Scope: The regulatory perimeter extends to any firm dealing directly or indirectly with UK consumers, requiring UK authorisation to prevent unregulated offshore firms from serving UK retail clients without oversight.
- Consumer Protection Measures: The FCA’s proposed regime requires firms to meet standards on transparency, operational resilience, and consumer protection similar to traditional finance, including knowledge assessments for users to ensure understanding of crypto risks (e.g., Strike’s appropriateness quiz).
- Regulated Activities: The draft legislation classifies activities such as issuance of UK stablecoins, dealing, custody arrangements, operating platforms, and arranging transactions in qualifying cryptoassets as regulated activities, subject to FCA oversight.
- Restrictions on Lending and Borrowing: The regime proposes restrictions on lending and borrowing related to cryptoassets, including potential bans on using credit to purchase crypto, affecting apps that offer leveraged crypto exposure.
- Exemptions for Decentralised Finance: Truly decentralised finance models without a controlling party are excluded from authorisation, but most centralised platforms like Relai, Strike, and Cash App will need FCA authorization.
- Transitional Arrangements: Existing crypto firms must apply for FCA authorisation within a set period or wind down UK operations, limiting full service availability until compliance is achieved.
In summary, these regulations require crypto firms to be FCA-authorised for trading, custody, and platform operation activities involving UK consumers, impose consumer protection and operational standards, and restrict certain crypto lending practices. These are the key regulatory barriers currently limiting full UK operation of Bitcoin apps like Relai, Strike, and Cash App