The UK Department of Economy and Finance has said it intends to amend existing regulations to include coins used as a form of payment.
In a statement issued on Monday, the UK Treasury said some stablecoins have the potential to become a “regular payment method” for UK retailers after consultations with various organisations, universities and individuals launched in January 2021. Take the necessary legislative steps.” To include stablecoins in its regulatory framework, “primarily by amending existing legislation on electronic money and payments.”
The Treasury said changes to regulations to include stablecoins as a form of payment are just part of a “package of measures” aimed at including crypto and blockchain technology in the UK. The government agency also announced the creation of a crypto-participating group to “work more closely with the industry,” exploring how the country’s tax system could stimulate the development of the cryptocurrency market, creating a “financial market infrastructure protection fund” targeting innovative companies, and introducing non-fungible tokens. . Issued by the Royal Mint in the summer of 2022.
“I am committed to making the UK a global hub for crypto-asset technology, and the measures we have outlined today will help ensure companies have the opportunity to invest, innovate and expand in this country,” said Finance Minister Rishi Sunak. . “This is part of our plan to ensure that the UK financial industry is always at the forefront of technology and innovation.”
UK Treasury tweet incorrectly identifies Litecoin, Dogecoin, Bitcoin, Ether and Zcash as stablecoins
John Glenn, Chancellor of the Exchequer for Economic Affairs, said the government will look at how crypto lending is handled in the country’s tax system and will hold consultations to see if foreign investors can be exempted from UK tax on cryptocurrency transactions on their behalf. With the exemption of the investment manager. . He will establish and lead the Crypto Asset Engagement Group, advising industry leaders and regulators to advise the UK Government.
In response to the hearing, it was stated that the UK plans to explore the possibility of regulating a “wider range of crypto-asset transactions,” given the market’s growth and reach. In addition, the country’s Financial Conduct Authority, or FCA, said it will host a “CryptoSprint” event in May with the aim of gathering input from industry participants on how to develop the UK’s regulatory framework for cryptocurrency. .
“If cryptocurrency is going to become an important part of the future, we in the UK want to be in it – and on the first floor,” Glenn said at Innovate Finance’s global summit on Monday. “In this country, we have already said that we will seek to protect consumers by passing laws to include certain cryptocurrencies within the scope of financial equity regulation.”
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The UK government’s announcement comes after the Financial Conduct Authority (FCA) announced the extension of the temporary registration status of some companies providing crypto services beyond the originally set deadline of March 31. In addition, the Bank of England and a group of British regulators said in March that they were evaluating the regulation of cryptocurrencies, noting specifically that they “welcomed” Her Majesty’s Treasury’s proposal to include cryptocurrencies in the country’s regulation.