UK Government Lays Out Plans to Become ‘Crypto Asset Technology Hub’

Today, the United Kingdom announced plans to become a “global crypto asset technology hub.” 

“It’s 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,” the UK’s Chancellor of the Exchequer Rishi Sunak said in a prepared statement. 

These moves include stablecoins being “brought within regulation” so as to have them used “in the UK as a recognised form of payment.” 

Additional measures include the government working with the Royal Mint—which produces the UK’s coins—to establish an NFT that will act as an “emblem” of the “forward-looking approach” the government intends to take. 

In addition, the government plans on creating legislation for a “financial market infrastructure sandbox,” which will be designed in such a way so as to help firms innovate in the industry. 

The Financial Conduct Authority (FCA) will also lead what is described as a “crypto sprint,” working with the Royal Mint—which produces the UK’s coins— and an “engagement group” to work with the industry. 

“We want to see the businesses of tomorrow—and the jobs they create—here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long-term,” said Sunak.

UK highlights crypto’s potential

The UK government’s announcement outlined the potential promise of stablecoins, claiming that with appropriate regulation, they could provide “more efficient” means of payment for consumers. 

“By recognizing the potential of this technology and regulating it now, the government can ensure financial stability and high regulatory standards so that these new technologies can ultimately be used both reliably and safely,” the government’s press release reads. 

Bank of England Governor Bailey Sounds Alarm on Crypto Scams

Andrew Bailey, Governor of the Bank of England, has raised concerns that crypto presents opportunities for scammers and criminals, per Bloomberg.  “You only have to ask the question: what do people committing ransom attacks usually demand payment in? The answer is crypto,” Bailey said at a “Stop Scams” conference organized by the Bank of England.  He added that while cryptocurrencies are innovative in the wider world of financial services, they also create “opportunity for the downright criminal...

The UK government is also intending on exploring blockchain technology and its use within broader UK financial markets. This technology, the government press release states, may “potentially achieve greater efficiency, transparency and resilience.”