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UK plans to become the global hub for the crypto industry

The UK government has announced on April 4, 2022 that it plans to become the global hub for crypto asset technology and investment, stating a set of initiatives that would attract digital asset companies worldwide. This includes the proposal of stablecoin regulations and the establishment of a Cryptoasset Engagement Group, as well as a Royal Mint NFT. 

‘We want to see the businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long-term. This is part of our plan to ensure the UK financial services industry is always at the forefront of technology and innovation’, stated by Chancellor of the Exchequer Rishi Sunak in a press release.

Despite the country’s strict regulatory measures against the crypto industry, this is by far the most prominent message that shows the UK’s support for the novel technology. City minister John Glen expressed that the government is noticing the potential crypto might bring into the economy, along with the assurance that they will maintain a neutral approach to the matter.

The British government is also open to the possibility of issuing government debt through distributed ledger technology (DLT). Glen said that Rishi Sunak had already authorised the Royal Mint to make an NFT this summer.

‘This will be an emblem of the forward-looking approach we are determined to take and there will be more details available very soon,’ said Glen during his keynote speech.

In addition, the Treasury aims to make changes to the UK tax system in an attempt to make crypto work better with the tax framework. They would address concerns revolving around staking and decentralised finance loans, as well as enhance the investment manager exemption that would encourage fund managers to add crypto to their portfolios.

This announcement was prompted by the Financial Conduct Authority’s (FCA) extension of the temporary registration of crypto firms operating in the country. A group of UK regulators, along with the Bank of England, has also begun assessing the inclusion of stablecoins within the country’s regulatory scheme.

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