Stablecoins will become regulated as a payment method. A sandbox will also be created to allow regulators and enterprises to try new financial innovations.
Jeremy Hunt is the Chancellor of Exchequer of the United Kingdom. He has outlined a series aimed at “drive development” and “drive competitiveness” in the country’s financial services sector. These reforms include actions to support cryptocurrency.
In announcing that it would create a better regulatory framework, the United Kingdom government stated. According to the government, the framework will be more flexible, less expensive and more sensitive to changing trends.
The announcement mentions a variety of topics, such as conducting a consultative process on proposals for the creation of a Central bank digital currency (CBDC), providing a crypto tax relief for investment managers, bringing stabilitycoins into regulatory perimeter and creating a sandbox which allows regulators and firms the opportunity to test new technologies with the potential to transform financial market.
These provisions were all included in the Financial Services and Markets bill, which was introduced at October’s beginning.
Hunt says that the alterations will be a demonstration of the United Kingdom’s global competitiveness in financial services.
Hunt also noted that the government will continue to take measures to impede growth in other sectors like digital technology and medical sciences.
Andrew Griffith, who acts as the Economic Secretary for the Treasury in Britain, says that the changes will improve regulation of financial services.
The official representing the government said that this would “increase development and opportunity in cities across the UK.”
The industry’s growth led to the UK government investigating nonfungible tokens.
To prepare for an investigation by the United Kingdom Treasury, members of the Digital, Culture, Media, and Sport Committee (DCMS), have launched a public inquiry to evaluate NFT assets.