Whilst the European Union waits for its Markets in Crypto-assets proposal (MiCA), the Digital Operational Resilience Act (DORA) and Member States such as Malta and Italy to adjust their framework accordingly, the U.K. government, leveraging its legislative freedom, announced its breakthrough plan to transform Britain into a Global Cryptoasset technology hub. Coined as the ‘Crypto Push’, Chancellor of the Exchequer, Rishi Sunak cemented this and stated:
“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.”
To kickstart the plan, the U.K. government announced several facets, including:
- The recognition of Stablecoins as a valid means of payment;
(Stablecoins are defined in this article)
- The commissioning of the Royal Mint to issue Non-Fungible Tokens;
- Measures to legislate a new ‘financial market infrastructure sandbox’;
- A CyptoSprint event hosted by the Financial Conduct Authority where collaboration with industry experts is held to aid policy developments;
- The establishment of a Cryptoasset Engagement Group to serve as a bridge between the industry and the policymakers, chaired by the Economic Secretary; and
- A push on DeFi loans by reviewing the UK tax system.
Albeit the Crypto Push has been criticised and touted as gimmick by several Member of Parliaments, it was certainly a push into the right the direction for the world of FinTech.
This article was written by Dr Ian Gauci and Legal Trainee J.J. Galea
For more information on digital services, information society, financial services and related areas please contact Dr Ian Gauci.
Disclaimer: This article is not intended to impart legal advice and readers are asked to seek verification of statements made before acting on them.