UK politicians are expressing the need for a strong push from the government on crypto regulation to help the country compete to be a center of activity in the cryptoasset space.
Ambition to Become The Crypto Hub
The UK government has officially launched the Financial Services and Market Bill, which has been highly anticipated by the crypto community recently because it includes regulations governing stablecoins to apply in the domestic payment sector.
The bill was sent to Parliament and passed on 20 July. However, to become law, the Financial Services and Market Bill must be presented and passed by the House of Commons, and then the House of Lords.
UK Finance Minister Nadhim Zahawi said of the bill:
“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.”
Support by Mr. Zahawi, who is determined to make the UK a global hub for crypto asset technology, is important for the chances of this bill being passed by all stakeholders in the UK government.
To accomplish this goal, the Finance Minister made a series of moves, including:
- Issued a policy governing stablecoins, making it a recognized payment option.
- Developed an experimental regulatory framework to incentivize new industry advancements, aiming for completion by 2023.
- Ordered a study on how to increase tax competitiveness in the UK to boost the crypto industry.
- Hosted the “CryptoSprint” conference in May 2022 to solicit input from major players in the crypto industry.
- Established the Crypto Assets Research Group to advise the government on crypto-related issues.
- Directed the Royal Mint to release a special NFT in summer 2022.
The UK’s regulatory overtures come just over three months after President Joe Biden issued an executive order directing the U.S. Department of the Treasury and agency partners to step up research and regulatory work towards cryptocurrency access. In addition, many other countries, such as the UAE or South Korea, are also making many moves to open their doors to clear the way for crypto investment.
Other countries and territories are tightening crypto regulations, include the European Union (EU), which has just approved a proposal to increase AML/KYC regulations on crypto trading activities, and India which recently introduced a tax of up to 30% on profits from crypto investments.
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