- UK will be a “global hub” for crypto business, with stablecoin legislation and NFT.
- The government will adopt distributed ledger technology to issue government debt.
- The UK Treasury plans to regulate stablecoin issuers to mimic the value of traditional assets like US dollars.
The UK government has put out intentions to become a “global hub” for the crypto business. They are proposing new stablecoin legislation, a Royal Mint NFT, and an arrangement of other initiatives to please digital asset companies.
In his speech, City Minister John Glen said that the government was committed to demonstrating that the UK is open for business and open for crypto firms.
We think crypto has a lot of potential. We will not decrease our standards, but we will maintain our technologically neutral attitude.”
The UK government plans to look into the idea of adopting distributed ledger technology to issue government debt. In addition, chancellor Rishi Sunak had commissioned Royal Mint to produce NFTs by the summer as “an indication of the forward-thinking approach.”
Firms operating in financial hubs such as the UK and the US are increasing pressure on governments, regulators, and politicians to provide clearer laws and regulations on digital assets.
The UK Treasury also unveiled long-awaited plans to regulate stablecoin issuers, which are cryptocurrencies designed to mimic the value of traditional assets like US dollars. The Treasury aims to amend existing regulations governing electronic money, such as money held in mobile phone apps, to include stablecoins, bringing them under the Financial Conduct Authority’s jurisdiction.
Ian Taylor, executive director of industry organization CryptoUK, which has increased lobbying of MPs in recent months, applauded the government’s “shift of tone.”
The government said at the start of the year that it will crack down on deceptive crypto advertisements, subjecting them to the same regulations as traditional financial advertising.
The government will now expand the scope of its crypto regulation work to include cryptocurrency trading and comment on new laws in order to build a world-leading framework for the remainder of the industry.