The United Kingdom (UK) government has laid out a comprehensive plan to capitalize on the burgeoning cryptocurrencies industry in an attempt to revamp the conventional payment system.
The crypto space has witnessed a tremendous burst of activity of late. The rise in cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have proved to be a major catalyst in triggering the change from the conventional fiat system to a new world of a digital economy.
UK Is Open For Crypto Business
According to reports, the UK government has presented a new proposal to become a “global hub” for the crypto industry. It has set out a detailed plan specifying new regulations for stablecoins, a Royal Mint NFT and a set of other measures to help consumers make payments more efficiently.
On April 4, Chancellor of the Exchequer, Rishi Saunak, tweeted,
“We’re working to make the UK a global cryptoassets hub. We want to see the businesses of tomorrow, and the jobs they create, here in the UK.”
Financial services minister, John Glen, said that Britain will legislate to bring some stablecoins under the regulatory net such as complying with existing payment rules. in a speech, he was heard stating that said the government was determined to show “the UK is open for business and open for crypto businesses”.
Glen also said the government has realized the potential in crypto and would like to churn out the maximum advantage out of this. He further explained that the UK government will now be “widening the gaze” of its work on crypto regulation, including the trading of cryptocurrencies such bitcoin, and consulting on new rules to create a “world-leading regime for the rest of the market”. He remarked,
“If crypto technologies are going to be a big part of the future, then we in the UK want to be in, and in on the ground floor.”
Expanding The Crypto Offering
The financial ministry noted when asked about the advent of cryptocurrencies that all stablecoins that reference a fiat currency should be regulated. They went on to add,
“The approach will ensure convertibility into fiat currency, at par and on demand. In order to administer the change in the financial model ,the Bank of England would regulate “systemic” stablecoins.”
In addition to stablecoins, the UK government is also looking forward for the Royal Mint to issue a non-fungible token (NFT), by the summer as “an emblem of the forward looking approach we are determined to take”. Next year, the Bank of England in collaboration with the Financial Conduct Authority (FCA) is planning on launching a regulatory “sandbox” for testing the use of blockchain in market infrastructure. Britain will also look at removing disincentives for fund managers to include crypto assets in their portfolios.
