According to Treasury Economic Secretary Richard Fuller, the UK “wants to be the country of choice for those who build, innovate and build in the crypto space”.
Speaking at the first Westminster Crypto Debate earlier this week, Fuller also said that “as crypto technologies grow in importance,” the new government created by Liz Truss “is one of the ways for the United Kingdom to gain a global competitive advantage.” is looking for.”
“The UK can either be an audience as this technology transforms aspects of life, or we can become the best place in the world to introduce and scale crypto technologies,” he said. “We want the UK to be the leading global hub for crypto technologies, and therefore build on the strength of our thriving fintech sector, creating new jobs, developing new products and services.”
Fuller, who was appointed as Treasury’s new economic secretary in July following the resignation of John Glenn and retained his position in the new cabinet, also said the new government was committed to the Financial Services and Markets Bill – Recently introduced legislation that proposes major changes to UK financial services regulation, including the establishment of a regulatory framework for stable coins,
According to the Treasury official, the bill will expand the existing regulatory framework by adding the ability to “use” the benefits of stablecoins to lower costs and improve services.
“At the same time, we will protect consumers by ensuring that the face value of stablecoins is backed by the underlying funds and consumer funds will be protected if a stablecoin provider goes bankrupt,” Fuller said.
2. Adoption of cryptoasset technology to establish a stablecoin regime and enable the use of a wider set of payment methods in the UK. pic.twitter.com/OByPNFQJh0
— HM Treasury (@hmtreasury) 20 July 2022
UK crypto attracts investment
Meanwhile, Alexander Stafford, a Rother Valley MP, said that “the UK is already world-renowned as the beating heart of finance, banking and markets, so it is only natural for crypto to see the UK as its home.”
“The UK should welcome the investment and opportunities of crypto,” Stafford said, adding that the truce, which was sworn in on Tuesday after the resignation of Boris Johnson, had already “reaffirmed” its commitment to this fast-growing sector.
“Crypto is truly an opportunity for everyone, from True to Thurcroft and the Rother Valley, and to Scotland and Northern Ireland. If we fix the problems with education and regulation first, I believe we will have one here in the UK. There will be a thriving industry,” Stafford said.
Fuller agreed, “By making this country a hospitable place for crypto technologies, we can attract investment, create new jobs, benefit from tax revenues, create a wave of new products and services, etc. and bridge the current state of UK financial services. Into a new era.”
Are there enough reasons to be happy about the UK’s ambitious goals? Some experts think so, despite the potential pitfalls along the way.
“The UK has been one of the centers of world banking for hundreds of years. There is no reason why it cannot be a major global hub for crypto technologies with a sensible and forward-looking framework,” said Bradley Duke, CEO of London-based ETC Group. Is. decrypt,
However, he cautioned about areas “where there is crossover between crypto and traditional finance.”
“These are areas that will need to be navigated most carefully, given the large body of current financial services regulation in Europe,” Duke said.
Earlier this year, the UK’s central bank published a financial stability report that pointed to a sharp decline in crypto valuations after massive sell-offs in May and June.
Although that wipeout “did not pose a risk to financial stability overall,” the Bank of England said tougher laws are needed to protect the broader financial system in the future.