Financial Services Reforms Advance UK Crypto Ambitions

Stablecoins will become a payment method and will be subject to regulation. A sandbox will also be created for regulators and enterprises to test out new financial innovations.

Jeremy Hunt, the Chancellor for the United Kingdom has outlined a series measures to drive development and competition in the country’s financial service industry. These reforms also include actions to promote cryptocurrency.

In announcing that it would create a better regulatory framework, the United Kingdom government stated. The government claims that the framework will be “more flexible,” “less costly,” and “more sensitive towards 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 claims that these changes will show the United Kingdom’s competitive global role in financial services.

Hunt added that Hunt would not hesitate to continue to use government measures that hinder growth in other industries, such as digital technology and medical science.

Andrew Griffith, who is the Economic Secretary of the Treasury in the United Kingdom states that the changes will lead to more effective regulation of financial services.

According to the representative of the government, this will “enable development and opportunity for towns and cities throughout 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.

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