The UK seems to be making a lot of interesting moves regarding how the nation is handling crypto regulations. It is one of the most proactive countries in Europe. However, their internal affairs are complicated due to the ongoing Brexit situation which makes it hard to find good solutions quickly which is required when dealing with a reactive industry like crypto.
The tax cut is a good decision
The Prime Minister of the UK Rishi Sunak is big on crypto and wants to create opportunities that would position the country to become a recognized crypto hub for Europe and the world. While it is a respectable plan and something that many countries focused on digitizing their economies should be prioritizing, the UK is not in the best shape economy-wise to approach such plans without any prior consideration.
Just in October, Andrew Griffith, the Economic Secretary to the Treasury, said that he wants to quickly assess the situation and provide a guideline for the government to tackle various issues related to regulating crypto assets. Under his initiative, the government developed a package of measures to help crypto investors deal with the current unfavorable situation in the global economy.
The biggest news is that the treasury will be extending the existing tax break for people invested in the crypto sector until the UK finds a good alternative to laws implemented in the EU. This process can take quite a long time which is a good period for any crypto holders in the UK to benefit from hefty tax breaks.
The UK will build a “sandbox”
The current plan of the UK government is to create an isolated zone in the economy to test various innovative ideas in the financial sector. The plan to issue a digital pound is also in discussion to this day with the next round of consultations scheduled for the next week during which more pre-Christmas policies will be discussed and prepared for rolling out.
Testing some financial instruments and products before making them available to the public is a great idea that may yield good results in the nearest future.
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