In the United Kingdom, [regulation](https://brendanbeeken.com/crypto-regulation-in-2022/) for a UK crypto exchange can be seen as somewhat of a grey area compared to the European Union (EU) and the rest of the world.

Before diving into the state of play in the global regulatory realm, we look at why regulation is significant to a UK crypto exchange. Anti-regulation crypto enthusiasts often oppose any notion of regulation being introduced, believing it will hinder innovation and goes against the decentralised nature of cryptocurrency, specifically not being tied to any institution or government authority.

In the eyes of policymakers and many crypto business owners alike, these are the factors in which crypto may have implications on global financial stability:

## Size, scale, and volatility of the burgeoning crypto market 

The collective crypto market cap has reached highs of an estimated $2 trillion with high volatility. At the time of writing, the cryptocurrency market has shed $1 trillion in the last month! The crypto market is forecast to continue growing at a rapid rate sporadically.

## Disruptive innovation effects of the industry

The distinctive nature of cryptos underlying blockchain technology conflicts with existing regulation for traditional methods of cross-border data flow, intellectual property rights, and capital controls. This introduces ambiguity as to how digital assets are treated for taxation purposes and various other policy concerns.

## Correlation to existing financial markets

Earlier enthusiasts insisted that crypto can add valuable diversification benefits as a hedge to one's portfolio. So much so that the OG of crypto, Bitcoin, is still often dubbed "Digital Gold". Recent analysis suggests this is not the case, as there is a strong correlation between BTC and the S&P500 during the Covid-19 pandemic. Figure 1 below displays significant swings in volatility aligned with the trend of the US stock market. 

![Uk crypto exchange image 1.webp](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Uk_crypto_exchange_image_1_539fbfac6f.webp)

 
Figure 1 (IMF, 2022)

For these reasons, policymakers worldwide see regulatory guardrails as imperative to achieving the common objectives of stabilising their monetary systems while championing innovation and economic growth.

## Importance of regulation for a UK crypto exchange

Close to a year ago, Binance, the largest crypto exchange in the world in terms of daily trading volume, was banned by the UK regulator. This caused panic among British users who could not withdraw their fiat funds from the platform. 

Crypto is volatile enough. UK crypto exchanges do not want to be banned like Binance. UK crypto exchanges crave stability, guardrails, and direction from regulators that can inform how to run their business sustainably. Therefore the Moni Talks team and I believe regulation is positive for a UK crypto exchange.

## Regulation fosters stability in the market

For cryptocurrency to unleash its full potential, the industry will need to integrate into the mainstream financial system. This will unlock even more finance and use cases of blockchain technology among institutions and everyday retail investors alike. 

Regulation will guide cryptocurrencies from looking like a gamble to more like an investment.

## Encourages consumer protection and confidence

UK crypto exchanges do not have access to the same capital protection in the case of default as regulated stock exchanges in the legacy financial system. If, one day, investors can be assured that 80% of their funds are recoverable in the case of default, this will inspire wider adoption of cryptocurrencies. It will shift the mindset away from “only invest an amount in crypto you can afford to lose (5%-10% allocation of your portfolio)”.

## Safer Crypto Industry

Although certain cryptocurrency coins like [BTC](/coins/btc) are completely secure, immutable, and transparent, many certainly are not. There is widespread fraud, scams, rug pulls, and market manipulation, which gives the industry a bad name. Scammers took $14 billion worth of crypto last year, a record compared to the $7.8 billion taken by scammers in 2020, according to a report by blockchain data firm Chainalysis.

At Moni Talks , we are a customer-first company and support regulation to weed out bad actors in the industry.

## Current regulatory landscape

Globally, central banks and policymakers are assessing impending regulatory responses to the rise of the crypto ecosystem. The traditional financial system becomes more interconnected with the rapidly growing decentralised finance (DeFi) industry each day. Concerns about how significant the overspill effects of this could be on the systemic stability of the monetary system have been keeping policymakers busy.

Countries from China to El Salvador have started evaluating and implementing different regulatory options. Most countries are broadly aligned in their objectives: to protect consumers, prevent illicit financing, protect the integrity of the market, and promote innovation. 

Some jurisdictions, such as India, have proposed amending existing legislation. The EU and United Arab Emirates (UAE) propose setting up completely new regulators to deal with the industry comprehensively. The UK has adapted. The UK has transposed some of the related frameworks related to [cryptocurrency regulation](https://complyadvantage.com/insights/crypto-regulations/cryptocurrency-regulations-uk-united-kingdom/) in the EU into its domestic law. Many jurisdictions' regulation is in limbo while still being developed before having the ability to be enforced. In Great Britain, all UK crypto exchanges are to be registered with the FCA.

Differing regulation presents arbitrage opportunities, lack of common standards and lingo. The Digital Currency Governance Consortium, composed of more than 80 organisations representing 33 countries, is tasked with facilitating a coordinated approach to regulation across the globe.

Key takeaways of UK crypto exchange regulation:
•	UK crypto exchanges are legal and have registration requirements with the Financial Control Authority (FCA)
•	The sale of crypto derivatives and Exchange Traded Notes (ETNs) are banned
•	Cryptocurrency is currently not considered legal tender
•	The HM Treasury plans to regulate some cryptocurrencies as part of a wider plan to make the UK a digital payment hub.

## Turbulent regulatory timeline for a UK crypto exchange

The UK has transposed some of the related frameworks related to cryptocurrency regulation in the EU into its domestic law. 

On 10 January 2020, the FCA announced that firms offering cryptocurrency services based in the UK are to be registered within one year. 

Importantly, to be classified as a registered UK crypto exchange, a company must comply with Anti Money Laundering (AML) and Countering the Financing of Terrorism (CFT) reporting and customer protection obligations. This ignited a scramble of application submissions inundating the FCA processing resource.

On 6 October 2020, it was announced that the sale of cryptocurrency derivatives to retail consumers was banned by the FCA. This came into effect three months later in order to protect everyday investors from market volatility. 

In December 2020, a ‘temporary registration regime’ was introduced due to the prolonged processing times of all registration from crypto businesses applying to adhere to the licensing requirements. On this register, a UK crypto exchange will be able to continue trading while awaiting determination of it’s application for registration with the FCA. 

More than 80% of applications to the FCA have withdrawn or been rejected on the back of not meeting standards money laundering standards. Crypto has often been referred to as the Wild West and licensing requirements are clearly the new Sherrif in town. 

Gemini’s head of UK, Blair Halliday, said, “The licensing regime is important as it provides customers the assurance that they’re dealing with a firm that has undergone rigorous scrutiny." 

From 10 January 2022 onwards, UK crypto exchange firms, as well as recognised financial advisers and investment managers that market and provide services in the UK market, have to be registered by the FCA. As of 30 March 2022, 33 firms have been registered with the FCA, and only 12 firms remain on the temporary registration regime with notable names such as Revolut and Copper. 


Regulatory Impact on a UK Crypto Exchange

This article addresses how to calculate the conversion of BTC into GBP. Before we start, it's important to understand what bitcoin really is.

[Bitcoin](/coins/btc) is a decentralised online cryptocurrency that can be sent from user to user on a peer-to-peer network without intermediaries.

The cryptocurrency is also called "digital gold" due to its high value, which no government or bank can manipulate. It is increasing in popularity as a payment method because it offers a more efficient and cheaper way to do business.

After hitting an extortionate value, Bitcoin is losing some of its value today. As the value changes, many people are concerned about the loss. To understand how much you can potentially lose or gain, you need to determine the fluctuation for each day. Let's look at how to calculate BTC to GBP daily.

## BTC to GBP: Calculate the Value Daily

The [value of Bitcoin changes every day,](https://coinmarketcap.com/) so there's no straightforward formula to work out the price of 1 BTC in GBP. So, let's keep the following as a rough guide for better understanding.

First, you need to find the number of Bitcoins currently in circulation. You can visit any reputable cryptocurrency app or website that tracks data on it.

Next, find the exchange rate for today. You can use a converter, easily found online, to find a reasonable estimate for the current exchange rate. But remember, the price of 1 BTC depends on its value relative to other cryptocurrencies.

For a rough idea of what one bitcoin worth is in pounds sterling today, consider doing the following formula:

1 BTC = (Current value of 1 BTC in GBP / The exchange rate from that day’s date) 0.000033 * 30,362.43 = 1.00196019 GBP
This method can give you a rough estimation of what one BTC is worth in GBP in today’s money terms. But since the price changes every day, the value of 1 BTC to GBP will also change.

The best thing about cryptocurrency is that it's backed by mathematical proof instead of any authority. The digital currency is immune to political influence as it's not subject to government control or inflation.

## How to Calculate the BTC to GBP Exchange Rate?

The BTC to GBP exchange rate is the rate at which Bitcoin will be exchanged for the British pound on a specific date or time. As no central banks control the cryptocurrency market, calculating an exchange rate for this system can be challenging. Use the formula mentioned above to calculate the current price of one BTC to GBP.

1 BTC = 1.00196019 GBP

## Conclusion

As cryptocurrency is becoming more and more relevant in today's technological revolution, it has become most important to understand the conversion of Bitcoin into GBP. The value of Bitcoin fluctuates each day, so you need to check the value daily to determine how much Bitcoin is worth in GBP today.
 
 
 
 



BTC to GBP: 1 Bitcoin to British Pound Sterling

Do you need a crypto wallet? UK cryptocurrency investors will, it appears from recent government statements.
The UK recently made a chest-thumping statement that the country is throwing its full support behind the cryptocurrency movement, hoping to become an epicenter of sorts for the market.

On April 4, UK Economic Secretary of the Treasury John Glen made a speech that included the country’s vision for becoming a global hub for cryptocurrency technology at the [Innovate Finance Global Summit](https://www.innovatefinance.com/ukfintechweek/). Glen was referring to a package of moves that the UK had in the works to bolster the strength of its financial services market by positioning itself at the “cutting edge” of cryptocurrency technology to attract more investments and jobs to the sector. The endgame of these efforts is apparently to widen consumers’ financial choices in the UK to include more cryptocurrency options.

## Some of the more salient points of the country’s plan include:

- The formation of a Cryptoasset Engagement Group to increase collaborative efforts between the UK and the cryptocurrency industry

- UK Finance Minister Rishi Sunak has officially summoned the Royal Mint to create and issue a Non-Fungible Token (NFT) by the end of the summer to communicate to the world that the UK is fully committed to accelerating cryptocurrency innovation in that country

- A pervasive analysis of the UK's tax system to identify where the country can be more competitive in incubating greater levels of innovation in cryptocurrency technology

- The formation of a "financial market infrastructure sandbox” that would persuade influential crypto-companies to experiment and innovate

Another critical component of the UK's plan is the broader adoption of stablecoins. When appropriately regulated, stablecoins provide an efficient means of payment to a broader consumer base with the perceived benefit of being affiliated with a fiat currency, like the dollar. 

Such an affiliation means much more stability in the value of the stablecoin. Other common digital assets like [Ether](/coins/eth) and [Bitcoin](/coins/btc) can demonstrate more price volatility because the assets are not pegged to any fiat currency. The anticipated course of action will be legislation that formally adopts stablecoins within the UK’s payment regulatory parameters.

## Crypto Wallets for UK Investors

Clearly, the UK plans to compete for pole position in terms of being at the forefront of cryptocurrency’s innovation engine. That means crypto investors in that country need to adopt a solid plan for safely storing and trading their digital assets.

## So, let's think 'crypto wallet UK'

Leaving digital assets spread out across a swath of different crypto exchanges puts investors at a higher risk of "hacking". Digital wallets are viewed as an essential layer of security that we can take to protect our assets. As the case often is with traditional currencies, crypto assets can be stored in different types of physical and “virtual” wallets. Many cryptocurrency wallets are simply software applications or desktop software programs.
 
Other more advanced (and secure) cryptocurrency wallets are physical hardware devices, often applauded for their excellent security benefits. 

The key features that UK crypto investors need to consider when choosing their wallet include:

•	Software or Hardware (which suits your lifestyle and trading style?)
•	User-friendliness
•	Security
•	What digital assets (tokens) are supported?

As our global society grows increasingly digital, it won't just be those in the UK who need a prudent strategy to inventory and trade their cryptocurrency funds.

Many hardware and software wallets are worthy of consideration, and the innovations are continuing by the day. 

Do your own research to ensure the wallet you decide upon will allow you to store your crypto assets in a safe and secure location.
 
 



Crypto Wallet: UK Investors Will Need One

When it comes to crypto investment, the UK wants to be at the front of the field.

With the rise in popularity of the crypto markets, it is no surprise that countries put in plans to benefit from this surge of new money. One country in particular that wants to be at the forefront of new technologies is the United Kingdom.

The interest levels are clearly evidenced by the popularity of the search term 'crypto investment uk'.
The government has decided that stablecoins will be recognised as a form of payment. This is one step closer to crypto being accepted as forms of currency instead of just stores of value.

## Cryptoasset Engagement Group Will be Created

This is only one measure as part of a package to make the UK a global technology and crypto investments hub. Another is legislating a 'financial market infrastructure sandbox' which will help firms and companies innovate, experiment, and create, leading to more jobs opening up and more money flowing into the UK, helping boost the economy. A Cryptoasset Engagement Group will also be created to increase communication between the government and the industry. It will advise the government on any issues it may face while building the crypto-asset sector.

Not only is the government trying to regulate, it is also creating its own non-fungible tokens (NFTs). Finance Minister Rishi Sunak has asked the Royal Mint (the government-owned company responsible for minting coins within the UK) to create NFTs by the summer of 2022. With summer coming, we expect more info to be brought to light relatively soon. This opens many doors and opportunities for crypto enthusiasts and UK crypto investment firms.

## Other Measures Taken to Assist Regulation

Other measures the UK is taking to help regulate the markets include looking for ways to enhance UK tax system competitiveness to encourage crypto-asset market development in the UK. It will also review how DeFi loans are treated for tax purposes. In May, a two-day event will see the [Financial Conduct Authority](https://www.fca.org.uk/) meet industry participants to learn their views regarding crypto-asset regime development.

The UK, well known for its advancements in technology and innovation, will unlock a massive new stream of income and business opportunity. This will create many new jobs as start-up companies and crypto investment firms look to take on new employees and build up their businesses. 

This will help boost the economy by an enormous margin. As I write, the total crypto market cap is $2.02 trillion. Tapping into just a fraction of this amount will do wonders for the UK. Not only will the UK dabble in the market, it will be one of the top leaders and innovators in the entire world. This is exciting news, and it will be interesting to see how the future of crypto investments in the UK unfolds.

For more Business news, see [here](/news/category/crypto-business-news).


Cryptocurrency Investment: UK Plans to be Global Hub

Taxes are an important part of realising profit while trading cryptocurrencies and considering your British [Bitcoin](/coins/btc) profit. It is crucial to be on the right side of the law and pay what you owe to the government.

The UK does not have a specific tax for bitcoin or cryptocurrencies; instead, it falls into the categories of Capital Gains Tax and Income Tax. We will explain the main differences between the two to help you understand into which of the two you fall.

Capital Gains Tax is implemented when doing the following with cryptocurrencies; selling crypto, trading crypto, spending crypto, and/or gifting crypto. You don't pay tax on all proceeds, or if one of these actions results in a loss, you only have to pay on crypto gains or, in other words, when you've made a profit.

You don't pay tax if you gift crypto to a spouse or civil partner.

It would be best to consider what tax bracket you fall into when calculating your gains. Unlike other countries, the UK taxes all capital gains and is taxed under the same rates and based on how much you earn annually. 

## The following are from the 2020-2021 tax year:

•	if the amount earned is more than £50,279, you are charged 20%

•	if the amount earned is below £50,270, you pay 10%

It's worth noting that if your crypto gains are less than £12,300 for the year, you do not need to pay any tax.
To calculate Capital Gains Tax, you need to work out your cost basis. To do this, you need to find out the Great British pound (GBP) price at which you bought plus any transaction fees. Once you have this figure, it is pretty straightforward. Capital gain is the difference between the price at which you purchased and the price at which you disposed of the asset. For example, if you buy Bitcoin worth £3,000 at the time of purchase and decide to sell it a month later for £3,300, your capital gain would be £300. It is important to keep track of your losses too, as recording them with [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) can offset against your gains, reducing the total amount you owe in taxes.

### The following actions are excluded from paying tax in the UK:

•	buying crypto with GBP

•	holding crypto

•	transferring between wallets

•	donating crypto to charity

Lost crypto is also not considered to be disposed of. For example, if you lose your private key and prove that you cannot regain access, you can submit a negligible value claim. If your application is successful, you may be able to claim that as a capital loss, reducing your taxes.

So, we've discussed Capital Gains Tax, but what is Income Tax? Crypto is taxed as income when a person gets paid in crypto, acquires staking rewards, mines tokens, or receives airdrops. HMRC has yet to decide what decentralized finance (DeFi) protocols are considered income. Examples of unclear but most likely income-taxed protocols include; referral rewards, learn to earn, watch to earn, play to earn, and shop to earn.

### Lastly, let's look at the Income Tax brackets for crypto:

•	up to £12,570 = 0% tax

•	£12,571 - £50,270 = 20%

•	£50,271 - £150,00 = 40%

•	any amount over £150,000 = 45%

Hopefully, this maximizes your British bitcoin profit!


British Bitcoin Profit: Paying Your Taxes

Are you looking for the Solana price? The UK market views can be informative.

The term 'solana price uk' is a hot phrase on Google, and here's why.

The [Solana](https://solana.com/) price (UK and elsewhere) has performed exceptionally well since its inception in 2019. However, that doesn't imply you should get in and invest right away.

Instead, think about the potential rewards as well as the risks before investing any money.

## A Little Knowledge on Solana

Solana was created in 2019 to address the shortcomings of traditional blockchains such as [Ethereum](/coins/eth). This means providing network users with a blockchain ledger that is faster, cheaper, and more scalable.

For example, even though Ethereum is the world's second-largest cryptocurrency and the de-facto smart contract system of choice, it can only handle 15 transactions per second. This is just too inefficient to be used as a worldwide blockchain network. On the other hand, Solana is said to be capable of processing over 65,000 transactions per second.

Another reason for Solana's popularity is that the blockchain network can process transactions in as little as 2-3 seconds, compared to the 13-15 seconds for Ethereum. Furthermore, although Ethereum transactions are notorious for having high costs when the network is busy, Solana transactions are lower cost.

Based on these performance-driven measures, many market observers predict that Solana will one day overtake Ethereum in terms of market valuation and global acceptance. Solana, like Ethereum, has its own native cryptocurrency token, SOL, which trades on exchanges.

### So why is 'solana price uk' such a popular search term?

Interest in Solana grows, despite its volatility. However, many crypto traders are sceptical about Solana's winning streak and are hesitant to buy it. Below are some of Solana's advantages and disadvantages to help investors decide whether Solana is a suitable investment for 2022 or not.

## Disadvantages 

1.	Unstable network: The investor community in Solana is still in its infancy. Investors may be hesitant to choose SOL over Ethereum because it is less well known. When the Solana Foundation confirmed its network was experiencing instability, the crypto's reputation took a knock. Because crypto investors value trust, this flaw sets SOL apart from its competitors.

2.	Inflation: Cryptocurrencies rose in popularity in 2020 for various reasons, one of which was to use them as a hedge against inflation. Most cryptocurrencies have a fixed limit on the number of coins that will ever exist. However, Solana does not have a consistent supply of currency. The designers started boosting the annual supply of SOL tokens by 8%, which means that the inflation rate will reduce by 15% until it reaches 1.5 percent, which will stop decreasing.

3.	Solana isn't decentralized enough: While some crypto enthusiasts claim there aren't many drawbacks to investing in SOL, this cryptocurrency element is widely regarded as its most significant drawback. The ETH network currently has approximately 200,000 validators, while the Solana network has only 1,000 validators. The more validators there are, the more secure the network becomes.

## Advantages

1.	Solana has the third-largest features market: Solana has the third-largest open interest in futures contracts, the most crucial measure in derivatives contracts. Regardless of its current trading capacity, the aggregate derives the total number of contacts stored on its network by market players. Open futures interest has maintained its previous levels despite a steep drop in price in early November.

2.	NFTs and Smart Contract: Over the last year, the NFT industry has exploded. Non-fungible tokens became a high-growth industry prospect, with massive sales sponsored by renowned digital artists. Solana went into the market to share the NFT alternative, taking advantage of the growing sector.

3.	There's a solid institutional attraction for Solana's ecosystem: The market capitalization of Solana is more than quadruple that of Avalanche and Terra. The last year has shown strong signs of SOL's rising investor community, and with increased investor adoption comes increased institutional adoption.

SOL's suitability for your investment is determined by your risk tolerance, asset diversification, and the amount of money you wish to invest. It's crucial to conduct research before investing in highly volatile assets like cryptocurrencies to see if they're a good fit for your portfolio.


Latest Moni

#UK | Page 2

Read the latest UK crypto news.

Regulatory Impact on a UK Crypto Exchange

BTC to GBP: 1 Bitcoin to British Pound Sterling

Crypto Wallet: UK Investors Will Need One

Cryptocurrency Investment: UK Plans to be Global Hub

British Bitcoin Profit: Paying Your Taxes

Solana Price: UK Market View on SOL

Russia using crypto to bypass sanctions

Mark Cuban believes crypto bear market will reverse when apps become useful

Cryptogrind: Bitcoin Freelancing