The reforms include regulating stablecoins as a means of payment and creating a sandbox where firms and regulators can test new financial technologies.
The United Kingdom’s Chancellor of the exchequer, Jeremy Hunt, laid out variety of reforms aiming to “drive growth and competitiveness” to the country’s financial services sector as well as efforts that support the crypto space.
In an announcement, the U.K. government highlighted that it'll produce a better regulative framework for the country that it describes as “agile, less costly and a lot of responsive to emerging trends.”
Topics mentioned within the announcement include consulting on proposals for the establishment of a central bank digital currency (CBDC), extending a crypto tax break for investment managers, bringing stablecoins into the regulatory perimeter and creating a sandbox that lets firms and regulators check new technologies that have the potential to transform financial markets.
These are all a part of the financial Services and Markets (FSM) bill announced earlier in October. per Hunt, the changes can show the U.K.’s status as a competitive world financial services hub. He explained that:
“The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and home-grown regulatory regime that works in the interest of British people and our businesses.”
In addition, Hunt noted that the govt. are going to be further delivering reforms that get within the way of other growing industries like digital technology and life sciences.
Andrew griffith, the U.K.’s Economic Secretary to the Treasury, said that the reforms will deliver smarter regulation for financial services. the govt. official believes that this “will unlock growth and chance in towns and cities across the U.K.”
Related: Bank of England raises interest rates to 3, largest jump in 33 years
On Nov. 4, the U.K. government additionally started looking into nonfungible tokens (NFTs) due to the growth of the sector. Members of the U.K.’s Digital, Culture, Media and Sport Committee (DCMS) opened a public inquiry to create an assessment of NFT assets before a review are often performed by the U.K. Treasury.
(EZRA REGUERRA, Cointelegraph, 2022)