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Government sets out plan to make UK a global cryptoasset technology hub

The Treasury has outlined a plan to make the UK a “global cryptoasset technology hub”, which will involve new legislation to promote the use of stablecoins and the Royal Mint creating an NFT.

The initiative is part of a broader effort by the UK government to “lead the way” in cryptoassets globally. The minister announced a number of steps the UK will take to bring digital assets under more regulatory scrutiny, including plans to:

Bring certain stablecoins into the UK payments framework so that stablecoin issuers and service providers can “operate and grow in the UK.”

Consult on a “world-leading regime” for regulating trade in other cryptocurrencies, including bitcoin.

Ask the Law Commission to consider the legal status of blockchain-based communities known as decentralised autonomous organisations, or DAOs.

Examine the tax treatment of decentralised finance (DeFi) loans and “staking,” which gives crypto users the ability to earn interest on their savings.

Establish a Cryptoasset Engagement Group that will be chaired by ministers and host members from the UK regulators and cryptoasset businesses.

Explore the application of blockchain technology in issuing debt instruments.

Chancellor of the Exchequer, Rishi Sunak said:

"It’s my ambition to make the UK a global hub for cryptoasset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country. 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. This is part of our plan to ensure the UK financial services industry is always at the forefront of technology and innovation."

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