UK is Set to Become a Worldwide Crypto Hub
Amidst a looming Coindesk Consensus, the UK government on Monday, 4 announced several initiatives that will see the country become a hub for crypto investments and technology. Exchequer’s chancellor, Rishi Sunak. He said they had outlined measures to enable companies to invest and innovate in crypto. This will, in turn, would allow firms to grow. Sunak mentioned one of the steps to be taken would be to introduce stablecoins into the UK financial system. Similar comments to support this were also mentioned by the Treasury minister, John Glen, at the Global Finance Summit. UK’s financial regulator 2019 released a report stating that crypto companies possessing digital assets for cross-border payment would face subject payments services guidelines; however, these regulations wouldn’t affect the token.
UK Crypto Tax Laws
As this goes on, the UK’s Treasury aims to engage with citizens on the modifications it wishes to make to the taxation system. John Glen added that the tax system does not need significant changes to work effectively with crypto. He said that the government of the UK was playing an essential role in the negotiations to implement a new tax framework that would improve not only customer confidence but also tax transparency. Furthermore, Glen mentioned that the new tax framework would provide a fair playing ground in tax reporting worldwide.
In addition, the Treasury is committed to solving problems such as crypto staking and how to treat decentralized finance loans. Plans to amend the investment manager exemption are underway. DAO, also known as Decentralized autonomous organisations, is also under the UK regulator’s keen eye. The Treasury asked the Law Commission to monitor the legal status of these Decentralized Autonomous Organizations. The Law Commission ensures that the laws made in Wales and England are fair.
A decentralized Autonomous Organization is a company based on a blockchain. The DAO is typically run by an intrinsic crypto-token, where a holder of such token is allowed to vote on vital company decisions.
The Cryptosystem
Glen mentioned that stablecoin legislation was not the only step the UK government took to become a world-leading crypto hub. He added that Treasury had plans to start a global-leading administration that would be safe and sustainable and probably promote rapid evolution.
The government also had plans to set up an industry group – Crypto Asset Engagement Group. The purpose of this industry group is to help guide future regulations. The group will be having up to 8 meetings a year. In addition, the group will have senior representatives from the FCA, Bank of England, and other businesses. Glen also added that the government had plans to enable companies to examine the distributed ledger technology.
In the meantime, FCA will be holding a two-day CryptoSprint next month. The firm will invite views from various industries relating to developing crypto regulations.
The NFT Index 2022
To wrap it all up, Glen added that the government had asked the Royal Mint to create a non-fungible token, otherwise known as NFT. This request aims to use as a sign to demonstrate the approach the Treasury is determined to take.
Image Source: Adobe Stock
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
DNACrypto Team
Cryptocurrency & Blockchain Experts
