Government announces plans to make the UK a global cryptoasset technology hub. This could mean a new way of accounting for your finances in your business.
This decision comes from the government’s consultation on cryptoassets back in 2021. The main focus of the consultation is to build a financial service sector that will benefit future businesses; the government believes that cryptocurrency will help them achieve that.
Follow this article for a summary of how the government plan to make the UK into a global cryptoasset technology hub and how it may benefit your firm.
The treasury has planned out a move that will make the UK a global cryptoasset technology hub, involving new legislation to stabilise and promote the use of stablecoins. Stablecoins will become a recognised form of payment to give individuals confidence in using cryptocurrency. With the government cooperating with crypto assets, they plan to create the necessary conditions for stablecoin issuers and users to operate and invest in the UK.
Additionally, the government will introduce a financial market infrastructure sandbox to enable firms to experiment, especially with the potential benefits of Distributed Ledger Technology (DLT) in UK financial markets. Alongside this, a research program will be running to explore the benefits of DLT for sovereign debt instruments.
The government is determined to have a stronger relationship with the industry. To put this into practice, John Glen, the Economic Secretary to the treasury, will create and chair a cryptoasset engagement group to put this into practice. This will aid the government in understanding issues that are faced in the crypto-world. This will include reviewing how DeFi Loans are treated regarding tax and investment.
Chancellor Sunak says: We want to see the businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively, we can give them the confidence they need to think and invest long-term.
The plan for cryptocurrency in the UK aims to ensure the UK financial sector remains at the edge of technology. This will invite investments and create new jobs. Follow the government’s plans on cryptoassets and be updated. Visit gov.uk for more information.