Binance and Circle submitted feedback to the UK government on the regulatory framework for digital assets

ChainCatcher news, the UK is considering establishing a new framework to manage the trading and lending of digital assets, with Binance and Circle providing feedback to the UK government.

Binance stated that special attention needs to be paid to consumer protection, market integrity, and financial stability, but warned that excessive regulation could "unintentionally stifle innovation and growth, eliminate choice and competition, and potentially push consumers towards unregulated markets or operators." While disclosure requirements should "provide consumers with the right information," Binance expressed doubts about whether trading platforms can "bear the traditional responsibilities of issuers" in the absence of an issuer. It also stated that decentralized finance needs to be "carefully defined," taking into account and adapting to differences when drafting new rules.

Binance CEO CZ tweeted, "Listing and delisting should be handled by each trading platform, which should be responsible for providing consumers with the right information according to clear disclosure rules and conducting thorough due diligence." CZ added that the company supports the introduction of a Crypto Market Abuse Regime "to mitigate the unique risks and challenges of cryptocurrencies."

Circle stated that the UK should make the registration process for digital asset companies "simple and transparent, with a clear indicative timeline, and feedback from regulators on what constitutes good or bad practices." Circle urged the UK Treasury to promptly disclose its plans for regulating fiat-backed payment stablecoins, further clarifying the distinction between 'crypto asset' activities and those related to payment stablecoins involving payment service providers. (source link)