The British Ministry of Finance released a discussion paper on the regulatory framework of encrypted assets in February. Generally speaking, it has these characteristics: 🏳️‍🌈

1. Manage by activity category, not asset category. I think this is conducive to management based on the nature of financial activities without causing excessive regulatory compliance pressure. For example, if NFT is not used for financial activities, resulting in creditor-debt relationship, interest income, etc., then there is not much legal pressure.

2. Perfectly stated the attitude of all aspects of encrypted asset activities. Various types of businesses in the crypto-asset space are described and well covered. At the same time, it also follows pragmatism very much, and selectively avoids things that cannot be perfected temporarily in practice. For example, for defi decentralized financial activities, the UK chose to wait for international standards before implementing them.