By Shelly Melancon (Switzerland)
Chancellor of the Exchequer in the UK, Rishi Sunak, has revealed he intends to make Britain the “crypto tech center of the world.”
“We desire to ensure that the future businesses and the jobs they create should happen in the UK first before any other place. We are confident that they can have all they need to create several jobs in the future through our effective regulation.”
Making Crypto Thrive In The UK Is Our Objective – Sunak
Then, he added, “this strategy is one of our efforts to ensure that the UK FinTech sector is the leading light in technology and innovation.” While delivering his speech at the ongoing Innovate Finance Global summit, the treasury secretary, John Glen, stated that “the authorities are already looking at ways to improve the country’s tax policy not to hinder the growth of our budding digital asset space.”
Also, “the government intends to review DeFi loans per appropriate tax measures.” The treasury added that the “government intends to widen the investment manager exemption policy to incorporate crypto assets.” Also, there would be regulations regarding stablecoins for payment settlement. However, the treasury didn’t specify how the form of payment settlement with stablecoins would take.
A Case For Stablecoins
This is similar to what the music and USDT are for the US government. If the treasury declares the sGBP and other similar UK stablecoins as legal tender, it would be a huge step in the growth of the UK crypto space. The treasury added, “the government will provide a framework that will allow crypto companies to test and create crypto services that will enable the distributed ledger technology (DLT).”
Also, “the authorities plan to establish a research initiative that will look into the deployment of the DLT as sovereign debt instruments.” Since crypto bonds are built on public blockchains such as Solana, it is unclear whether the UK will likely be interested in approving the issuance of crypto bonds.
However, if done right, public blockchain-built crypto bonds can serve as a way of introducing token bonds to many citizens who still lack adequate knowledge about crypto bonds investment. Tokenized bonds and the commonly recognized tokens can be used in similar ways.
Playing Hide And Seek With The Crypto Sector
While Britain can easily pull this off, they haven’t shown full support for the crypto space since it started fraternizing with this space more than a decade ago. The FCA is organizing a ‘CryptoSprint’ next month with industry leaders to seek their direct opinions regarding crucial issues concerning the long-term development of the crypto space.
Many crypto industry leaders claim that part of their suggestion to the government would be the unbanning of crypto traded products and ETFs. As Germany and the US take major strides in enticing players in the crypto space, it is left to see how the UK will compete favorably with these other top economies. However, it seemed that the UK would be the first among these three economic giants to take a forward-step approach to adopting digital assets. Chancellor Sunak has already approved that the Royal Mint create and issue an NFT by summer.
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