Authorities in the UK are also looking into the establishment of a Cryptoasset Engagement Group that would closely collaborate with the industry.
UK’s Economic and Finance Ministry has revealed intentions for amending the country’s regulatory framework. Per the reports, they want to incorporate stablecoins as a payment mode in the UK.
Stablecoins in the UK
HM Treasury in a Monday announcement revealed that the government is taking necessary regulatory steps to ensure that stablecoins are being integrated into the country’s legislative framework. This is primarily through the amendment of current electronic money and payments legislation.
It follows that the Ministry has been consulting with several organizations, learning institutions, and personalities since January 2021. According to the announcement, some stablecoins are poised to become a universal payment mode to be used by retail consumers within the UK.
Rishi Sunak, the Chancellor of the Exchequer, also revealed his aspirations of making the UK a hub for crypto tech. The government has set up an enabling environment that would prompt companies to invest, innovate and develop the industry.
Sunak also affirmed that the efforts were part of plans toward ensuring the United Kingdom financial services sector remains a pacesetter in the realm of technology and innovation.
Authorities in the UK are also looking into the establishment of a Cryptoasset Engagement Group that would closely collaborate with the industry with the goal of understanding how the UK’s taxation system could support development within the crypto market.
The government body also added that the joint force would set up a financial market infrastructure sandbox targeting innovative companies as well as the introduction of an NFT issued by the Royal Mint come Summer 2022.
Supporting Sunak’s proclamation, John Glen, Economic Secretary for UK Treasury, revealed that the Government will evaluate the kind of treatment that crypto lending would receive in the UK taxation system.
The Economic Secretary also highlighted that the Government would determine whether investors from other countries would be bound to UK tax laws for crypto transactions.
CryptoSprint by the FCA
UK’s Financial Conduct Authority (FCA) has committed to holding a CryptoSprint event in May this year, targeted at getting the opinion of industry players on how a regulatory structure for cryptocurrency might be further developed within the UK.
Contributing to what the FCA said, Glen said during the Innovate Finance Global Summit on Monday that with crypto technologies becoming a big part of the future, the United Kingdom intends to be part of that revolution and would take a basal and therefore stable position in that drive. He affirmed that the country has committed to protecting consumers through legislation to bring some cryptocurrency assets within reach of financial promotions regulation.
It is clear that the UK has plans for exploring the regulation of more activities relating to crypto-assets following the growth and adoption that the sector has received in the market.
Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.
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