Financial Services Reforms Advance UK Crypto Ambitions
Jessie A Ellis Dec 09, 2022 02:09
The U.K. Chancellor of the Exchequer, Jeremy Hunt, laid out a number of reforms aiming to "drive growth and competitiveness" to the country's financial services sector. The reforms include consulting on proposals for the establishment of a central bank digital currency (CBDC), extending a crypto tax break for investment managers and creating a sandbox that lets firms and regulators test new technologies.
As part of the changes, stablecoins will be regulated as a form of payment, and a sandbox will be established so that enterprises and regulators may try out innovative financial innovations.
Jeremy Hunt, the Chancellor of the Exchequer for the United Kingdom, has outlined a series of measures that are intended to "drive development and competitiveness" to the country's financial services industry. These reforms include actions that promote the cryptocurrency area.
The government of the United Kingdom underlined 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 makes reference to a number of topics, some of which include conducting 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 firms and regulators to test new technologies that have the potential to transform financial markets.
All of these provisions were included in the Financial Services and Markets (FSM) bill that was introduced at the beginning of October.
According to Hunt, these alterations will demonstrate the United Kingdom's role as a competitive worldwide centre for financial services.
In addition, Hunt noted that the government would continue to implement measures that obstruct the growth of other sectors, such as the medical sciences and digital technology.
According to Andrew Griffith, who serves as the Economic Secretary to the Treasury in the United Kingdom, 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 throughout the UK."
Due to the expansion of the industry, on November 4, the government of the United Kingdom began investigating nonfungible tokens, commonly known as NFTs.
Before the United Kingdom Treasury may conduct an investigation, members of the United Kingdom's Digital, Culture, Media, and Sport Committee (DCMS) have initiated a public inquiry to conduct an evaluation of NFT assets in order to prepare for the investigation.
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