Binance and Circle offer feedback to the UK government on digital asset regulation

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Bitdeer (BTDR) will collaborate with the government of Bhutan to build cryptocurrency mining operations in the Southeast Asian country. The Nasdaq-listed miner and the government’s commercial arm, Druk Holding & Investments, will create a $500 million fund to attract overseas investors to the endeavour. The cash raised will be utilized to build hydropower-powered data centers in the country. Bitdeer presently has six mining locations in Washington state, Texas, Tennessee, and Norway, and the cooperation will “mark a critical expansion into Asia.” BTDR has dropped over 30% from its first public offering, closing Tuesday at $7.19. The mining business faced a choice between dropping crypto asset valuations and rising energy prices, resulting in a number of firms declaring bankruptcy.

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Binance and Circle have provided feedback to the UK government in order for it to consider a new framework for regulating digital assets. Binance, the world’s largest exchange, has cautioned that excessive regulation will hinder innovation and growth, eliminate choice and competition, and potentially drive users to unregulated markets or operators. It questioned whether trading platforms may assume issuer responsibilities when there is no issuer, and it advised that decentralized finance be “carefully defined.” Binance CEO Changpeng “CZ” Zhao has also advocated for implementing a Crypto Market Abuse Regime to address the risks and obstacles associated with cryptocurrency. This comment comes when global regulators are determining how to govern the business. The European Union passed its Markets in Crypto Assets (MiCA) rule last month, and there are requests for more clarification from the industry in the United States as the SEC and Commodity Futures Trading Commission (CFTC) tighten their regulatory scrutiny. Circle requests clarification on stablecoins and the UK government’s goals for bringing crypto assets within the UK regulatory perimeter and developing proportional and agile laws. The venture capital fund A16z crypto is urging the UK to take a “more nuanced approach” to the pending legislation, claiming that “a ‘one-size-fits-all’ approach to the regulation of crypto asset transactions would not be consistent with the Treasury’s core design principle of the same risk, same regulatory outcome.”

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