UK Government Aims to Make UK Global Cryptoasset Hub
The UK government has outlined its plans for making Britain a hub for worldwide crypto technology and investment.
It has devised a series of measures that aim to place Britain at the centre of crypto-related developments.
The measures include:
- Passing legislation to create a “financial market infrastructure sandbox’’ to help firms innovate.
- A Financial Conduct Authority-led, two-day CryptoSprint conference to assess all the issues relevant to creating a future cryptoasset regulatory regime.
- Working with the Royal Mint to create an Non-Fungible Token'>NFT to highlight the UK’s crypto credentials.
- A cryptoassets engagement group to work more closely with industry.
- Assessing how the UK tax system could be adjusted to encourage the development of the cryptoasset market.
- Recognising stablecoins as a valid form of payment.
The measures have the aim of ensuring the UK financial services sector stays at the cutting edge of technology while also attracting investment and jobs. The government believes its approach will ensure both financial stability and high regulatory standards, enabling new technologies to flourish and be used reliably.
In announcing the measures, the Economic Secretary to the Treasury, John Glen, also stated that the UK is to examine the possible benefits of using Distributed Ledger Technology (DLT) in financial markets. DLT involves data being synchronised and shared in a decentralised way, which could lead to increased efficiency and transparency.
Mr Glen added that the government would consult on wider regulation of the cryptoasset sector later this year.
While the government appears to have set itself a sizeable and ambitious workload in relation to crypto, its efforts have to be viewed as worthwhile and innovative steps towards enhancing the UK’s technology markets. The UK has already been at the forefront when it comes to creating a framework to deal with crypto assets within the legal system and courts
