Financial Services Reforms Guide the UK in Stepping Up its Crypto Initiatives

Jeremy Hunt, the United Kingdom's Chancellor of the Exchequer, recently proposed various reforms designed to "drive growth and competitiveness" in the country's financial services industry, with a particular focus on the cryptocurrency sector.

The U.K. government declared that it intends to establish a more intelligent regulatory regime for the nation, which it has characterized as being “agile, less costly and more responsive to emerging trends.”

The announcement discussed consulting on proposals for setting up a central bank digital currency (CBDC), extending a crypto tax break for investment managers, including stablecoins in the regulatory framework, and creating a sandbox that enables companies and regulators to experiment with new technologies which may revolutionize financial markets.

These are all part of the Financial Services and Markets (FSM) bill announced earlier in October. Hunt stated that these developments will demonstrate the U.K.’s standing as a successful international financial services center. 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 government will be further delivering reforms that get in the way of other growing industries like digital technology and life sciences.

Griffith, the U.K.’s Economic Secretary to the Treasury, declared that the reforms will bring about more sensible regulation for financial services and this ''will unlock growth and opportunity in towns and cities across the U.K.", as he believes.

On November 4th, due to the thriving NFT sector, the U.K. government began investigating nonfungible tokens (NFTs). Consequently, the U.K.'s Digital, Culture, Media, and Sport Committee (DCMS) launched a public inquiry in an effort to properly analyze NFTs prior to the review conducted by the U.K. Treasury.