The UK Treasury Plans To Regulate Stablecoins and Issue an NFT
On Monday, UK chancellor Rishi Sunak announced plans to regulate stablecoins and issue an NFT as part of an effort to position the UK as a crypto-friendly tech centre. The UK Treasury said in a news release that the changes will see stablecoins acknowledged as a legal form of payment, arguing that with appropriate regulation, they may provide a more efficient way of payment and expand consumer choice.
“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,”Sunak said
Sunak has also requested that an NFT be issued by the Royal Mint. The Royal Mint is a government-owned mint in the United Kingdom that makes coins. It added in an emailed statement that it would provide more information in due course.
Through its official Twitter account, the Treasury said the move highlights the “forward-looking approach we are determined to take towards crypto assets in the UK.” The tweet also said it would be issued by the summer.
Along with these regulations, the Treasury will integrate a ‘financial market infrastructure sandbox’ to allow firms to experiment and innovate, as well as explore ways to improve the competitiveness of the UK tax system in order to encourage further development of the crypto-asset market, according to the statement.
The action comes after a long period of uncertainty surrounding crypto regulation in the UK, as firms awaited decisions from the financial authority on anti-money laundering licenses. The process, which is being handled by the Financial Conduct Authority (FCA), has pushed numerous companies to reconsider their position in the UK market, including cryptocurrency exchange B2C2, Blockchain.com, and wallet business Wirex, all of which have decided to seek licenses elsewhere.
The FCA also requested contributions for its first “Crypto Sprint” event today, promising to collaborate with the industry to inform policymaking. The FCA announced the event on its website on Monday, saying it will bring together industry experts, including engineers, crypto specialists, academics, regulated financial institutions, and consumer organisations on May 10-11.
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