The U.K. government has unveiled a detailed plan to make the country a global crypto hub and “a hospitable place for crypto.” The plan includes establishing a dynamic regulatory framework for crypto, regulating stablecoins, and working with the Royal Mint to create a non-fungible token (NFT) to be issued by the Summer.
UK wants to be ‘best place’ to start and grow crypto businesses
The UK government on Monday unveiled several initiatives as part of its plan to make the UK “a global hub for crypto-asset technology”.
They include regulating stablecoins, legislating for a “financial market infrastructure sandbox” to help firms innovate, holding a Financial Conduct Authority (FCA)-led Cryptosprint, working with the Royal Mint on a non-fungible token (NFT), and establishing an engagement group to work more closely with the crypto industry.
Britain’s Chancellor of the Exchequer, Rishi Sunak, commented:
It’s my ambition to make the U.K. a global hub for cryptoasset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate, and scale up in this country.
John Glen, UK Economic Secretary to the Treasury, explained the government’s crypto plan at the Innovate Finance Global Summit on Monday.
“We want this country to be a global hub — the very best place in the world to start and scale crypto-companies,” he emphasized, adding:
If there’s one message I want you to leave here today, it’s that the UK is… open to crypto businesses.
“If crypto-technologies are going to be a big part of the future, then we — the U.K. — want to be in, and in on the ground floor. In fact, if we commit now … if we act now … we can lead the way,” the economic secretary stressed.
A Blueprint for Leading the Crypto Space and Stablecoin Regulation
Commenting on “a detailed plan” that the UK government unveiled on Monday, Glen noted that “the way we regulate crypto-tech needs to be dynamic,” stating:
We shouldn’t be thinking of regulation as a static, rigid thing. Instead, we should be thinking in terms of regulatory ‘code’ … like computer code … which we refine and rewrite when we need to.
He then talked about the regulation of stablecoins. “I can confirm that we will legislate to bring certain stablecoins into our payment framework…creating the conditions for stablecoin issuers and service providers to operate and grow in the UK,” he said. .
Regarding the regulation of the broader crypto market, the economic secretary clarified: “We think the market has changed sufficiently for us to look at regulating a broader set of crypto activities including trading of tokens like bitcoin … and we will consult on a world-leading regime for the rest of the crypto-market too.”
Commenting on crypto taxation, he said, “We don’t think the tax code will require major surgery to make it work more smoothly for crypto. But we will look into and fix specific issues like dealing with the defi [decentralized finance] loans and participations.
Government to Work With Royal Mint on an NFT
Before concluding his speech, the economic secretary confirmed:
I am announcing today that the Chancellor has asked the Royal Mint to create a non-fungible token – an NFT… which will be issued by the summer.
Regarding what the future of crypto in the U.K. would look like, he admitted, “No one knows for sure.” Nonetheless, emphasizing that “We’re on the cusp of something important” and “We have the opportunity to shape and lead it,” the economic secretary opined:
We believe that by making this country a hospitable place for crypto, we can attract investment…generate many new jobs…and create a wave of revolutionary new products and services.
