The UK is taking these and other steps to position itself as a global hub for crypto technology innovation, the Economic Secretary of the Treasury said at UK Fintech Week 2022.
The UK is ready to bring stablecoins into its electronic payments regulatory framework, opening up the assets to wider adoption across the country.
The plans came to light on Monday, highlighted by a government official at the InnFin Global Finance Summit in London.
According to Treasury Secretary for Economics John Glen, the government is looking into appropriate and actionable measures that should put the UK at the forefront of cryptocurrency innovation.
The government wants the country to become a “global hub” for cryptocurrencies and investment, Glen said.
And one of the steps involves the gradual tightening of the country’s regulatory guidelines so that stablecoins become a legal payment option for consumers. These steps will also be tailored to support stablecoin issuers and service providers.
A Royal Mint NFT for the summer
The Ministry of Finance’s recommendations also include an understanding that growth in the digital assets space can provide a major boost to consumer choice. As such, the UK government is considering a new regulatory approach that could support not only the stablecoin sector but also other sectors within the broader digital asset markets.
“If cryptographic technologies are going to be a big part of the future, then we, the UK, want to participate,” Glen said at UK Fintech Week 2022.
Plans to introduce stablecoins into the UK regulatory environment have been underway since last year. However, there is a new rhythm to the whole idea.
On Monday, Her Majesty’s Treasury (UK Chancellor of the Exchequer and Finance) announced that Chancellor of the Exchequer Rishi Sunak had asked the Royal Mint to create an NFT and issue it by the summer.
Other major cryptocurrency plans by the British government include broader consultations on decentralized autonomous organizations (DAOs) and decentralized finance (DeFi). For the latter, key considerations revolve around DeFi lending and participation.
According to the Ministry of Finance, the new legislation is part of the broader objective of having a Financial Market Infrastructure Sandbox by 2023.