The Chancellor of the Exchequer has unveiled plans to transform the UK into a “global hub” for crypto assets.
The Treasury has confirmed its intention to recognise stablecoins, digital assets pegged to the price of real world assets, as a valid form of currency. The government will also explore ways to make the UK’s tax system more competitive in order to encourage further development of the cryptoasset market in the UK.
“It is my ambition to make the UK a global hub for crypto asset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country,” Rishi Sunak said.
Sunak added that embracing crypto assets will ensure that the UK’s financial services industry is “always at the forefront of technology and innovation.”
“By regulating effectively we can give them the confidence they need to think and invest long-term,” Sunak continued, adding that the Treasury will work with the crypto industry in order to develop a framework for regulation.
The Treasury has also announced plans for the Royal Mint to issue official NFTs later this Summer to signal the UK’s openness to digital assets.
The tone struck by the UK’s Chancellor marks a contrast from recent statements by UK regulators.
Just today, the governor of the UK’s central bank Andrew Bailey called crypto the “new front line for scammers,” warning that fraudsters are capitalising on digital asset technology.
The Bank of England has repeatedly warned that the $2.1 trillion crypto market could threaten financial stability.
The Financial Conduct Authority today confirmed plans for a CryptoSprint later this year which will help to bring regulation up to speed with developments in the crypto space.