UK Chancellor of the Exchequer Jeremy Hunt has unveiled a series of reforms that seek to “increase growth and competitiveness” of the country’s financial sector, including initiatives to back the crypto space.
A declaration from the UK government stated that it would set up a smarter regulatory environment for the country. It describes it as “flexible, more economical and more responsive to emerging trends.”
In the announcement, consultation was provided on plans for the establishment of a central bank digital currency (CBDC) and the extension of a crypto-tax break for investment managers. The incorporation of stablecoins into the regulatory framework and the creation of a sandbox that allows regulators and companies to experiment with new technologies with the capacity to revolutionize the financial industry were also discussed.
All of these are part of the Financial Services Markets Bill, which was announced in October. According to Hunt, these changes will demonstrate the UK’s competitive position as a hub for global financial services. He clarified as follows:
“The reforms employ our Brexit freedoms to deliver a homegrown, dynamic regulatory regime that works in the interests of Brits and our companies.”
Furthermore, Hunt said that the government will continue to implement reforms that will promote growth in other industries such as life sciences and digital technology.
Andrew Griffith, Economic Secretary of the UK Treasury, suggested that the reforms will improve regulation of financial services. Officials at the government believe this will “unlock growth and opportunity in towns and cities across the UK.”
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On November 4, due to the rapid growth of this space, the UK government started looking into non-fungible tokens. Members of the UK Committee for Digital, Culture, Media and Sport (DCMS) have started a public consultation to evaluate NFT assets held in the UK. The Treasury is also doing a review.
