As part of the changes, stablecoins will be regulated as a form of payment and a sandbox will be established for companies and regulators to test groundbreaking financial innovations.
Jeremy Hunt, the UK’s Chancellor of the Exchequer, has outlined a series of measures that are intended to “boost the development and competitiveness” of the country’s financial services industry. These reforms include actions that promote the area of cryptocurrencies.
The UK government stressed in an announcement that it would establish a better regulatory framework for the nation. The framework will be “agile”, “less expensive” and “more sensitive to changing trends”, according to the government.
The announcement touches on a number of topics, some of which include holding a consultation on proposals for the establishment of a central bank digital currency (CBDC), extending a crypto tax break for investment managers, bringing stablecoins into the regulatory perimeter, and creating a sandbox that allows companies and regulators to test new technologies that have the potential to transform financial markets.
All these provisions were included in the Financial Services and Markets (FSM) bill that was presented in early October.
According to Hunt, these changes will demonstrate the UK’s role as a competitive global hub for financial services.
In addition, Hunt noted that the government will continue to implement measures that hinder the growth of other sectors, such as medical sciences and digital technology.
According to Andrew Griffith, who serves as Economic Secretary to the Treasury in the UK, the changes will result in more effective regulation for financial services.
According to the official representing the government, this will “unleash development and opportunity in towns and cities across the UK.”
Due to the expansion of the industry, on November 4, the UK government began investigating non-fungible tokens, commonly known as NFTs.
Before the UK Treasury can conduct an investigation, members of the UK Digital, Culture, Media and Sport (DCMS) Committee have launched a public inquiry to conduct an assessment of NFT assets to prepare for the investigation. .