TheCityUK’s report calls on UK policymakers to capitalise on the regulatory freedoms afforded by Brexit and to lead the global regulatory approach to cryptoassets. The report sets out five principles for shaping regulation in this space:
- The UK must act quickly if it is to set a global gold standard in cryptoassets and Distributed Ledger Technology (DLT) regulation;
- Specific features of novel technologies and use cases should not be overlooked;
- Not all uses of DLT need to be regulated;
- Industry engagement is crucial to achieving an appropriate risk-based approach; and
- Take advantage of the transformative potential of stablecoins and Central Bank Digital Currencies.