Alongside Treasury’s decision to regulate stablecoins, the government has announced wider plans to make the UK a global hub for cryptoasset technology and investment.
In a speech delivered at the Innovate Finance Global Summit, John Glen announced that the UK will proactively explore the potentially transformative benefits of DLT, including exploring the feasibility and benefits of using DLT for sovereign debt instruments. The government is also developing an FMI ‘sandbox’ to support firms wanting to innovate, including by using DLT and other technologies.
Other measures include:
- exploring ways of enhancing the competitiveness of the UK tax system to encourage further development of the cryptoasset market in the UK;
- the Chancellor has commissioned the Royal Mint to create a Non-Fungible Token this summer;
- FCA will hold a two day ‘CryptoSprint’ in May with industry participants, seeking views directly from industry on key issues relating to the development of a future crypto regime; and
- John Glen will establish and chair a Cryptoasset Engagement Group, convening key figures from the regulatory authorities and industry to advise the government on issues facing the cryptoasset sector.
Mr Glen also confirmed that the government will consult on wider regulation of the crypto sector later this year.