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The starting point will be the law recognizing stable coins as a legitimate means of payment.
On Monday, the UK government announced a new set of plans aimed at making the country a global hub for cryptocurrency technology and investment.
"These measures will ensure that companies can invest, innovate and scale across the UK," Finance Minister Rishi Sunak said in a press release.
According to Sunak's statement and the opinion of John Glen, Secretary of State for the Uk Treasury at the Global Finance Summit: One of the first steps will be to add stablecoins to the national payment system. This will allow consumers to confidently use stablecoin payment services. The law is the first step closer to its ambition to become the world's leading stablecoin management empire.
In 2019, the UK's Financial Conduct Authority (FCA) released a report on cryptocurrencies. The report suggests that cryptocurrency companies themselves own cross-border payment assets, which may have followed government payment regulations, but tokens have yet to actually be regulated.
Tax
The Treasury is also trying to work closely with the public on tax-related proposals. Glenn said, "We think the tax code doesn't need to change much to match cryptocurrencies." The UK is also leading the way in negotiations on a new tax reporting framework aimed at increasing trust and transparency," Glen said.
Uk Treasuries will also aim to address issues such as handling debts and deposits in decentralized finance. In addition, the management exemption in investments will also be amended to help UK fund managers remove barriers to adding digital assets to their portfolios. Decentralized Autonomous Organisations (DAO) are also subject to the supervision of the UK regulator. The Treasury has asked the Law Commission , which specialises in ensuring legal justice in England and Wales, to review the DAO's case.
A DAO is an organization or company with a BlockChain public platform, usually operated by an original token. Whoever holds this Token has the right to participate in voting for the organization's decisions.
Management policy
In addition to the stable coin regulatory regulations, the Treasury is implementing broader plans to "establish a world-leading empire…[hỗ trợ] safety, sustainability and rapid innovation," Glen said.
The government will establish a "Digital Assets Organization" to guide the next stages of regulation. According to Glen, the organisation's chairman will be equivalent to the ministerial level, with participation including members of the FCA (the UK's financial regulator), the Bank of England and businesses. Meetings are expected to take place up to 8 times a year.
The legal plan for building basic financial market infrastructure (Sandbox) is also introduced that also allows companies to test and activate distributed ledger technology. In May, the FCA will also hold a two-day "CryptoSprint" to find more perspective from the cryptocurrency industry on related issues.
Will there be another NFT?
In giving these favourable signals, the UK government has asked The Royal Mint to create an NFT for release in the summer as evidence of the approach it will be determined to take in the future.
