Richard Fuller, UK Economic Secretary to the Treasury, said, “We want to become the nation of choice for individuals seeking to create, innovate, and develop in the crypto area.”
This declaration was made during a legislative discussion on the regulation of crypto assets in the nation. With the incoming prime minister, he claimed, the United Kingdom would become the “preeminent worldwide center for crypto technology.” This week, Liz Truss became the Prime Minister of the United Kingdom.
Martin Docherty-Hughes, MP for West Dunbartonshire, sparked the crypto regulatory discussion by bringing up this topic in the House of Representatives. In his lecture, Fuller emphasized the need of a solid set of rules that would facilitate the secure operation of cryptocurrencies.
The Financial Services and Markets Bill is a significant move in this direction. It intends to use the advantages of stablecoins. In addition, it tries to provide better services owing to the competitive market for payment systems. Moreover, it will protect customers in the event that a stablecoin supplier becomes bankrupt.
The Economic Crime (Transparency and Enforcement) Bill will also be introduced in this regard. This will provide law enforcement additional authority to confiscate and reclaim offenders’ digital assets. Fuller noted that similar to banks, crypto businesses must do due diligence assessments.
All crypto companies in the United Kingdom must register with the Financial Conduct Authority (FCA). According to the United Kingdom’s anti-money laundering and counter-terrorist funding system, this regulation applies.
A few days ago, the Office of Financial Sanctions Implementation (OFSI) declared that crypto businesses are now compelled to notify the OFSI of any person suspected of being sanctioned or having violated financial sanctions legislation.
These changes are consistent with the worldwide trend of increased regulatory monitoring of the digital asset industry. Given the conditions, additional rules and regulations will be implemented. Similar to the old banking system, additional responsibility to supervise the crypto economy might potentially arise.
Additionally, Fuller spoke on the use of distributed ledger technology (DLT) in government activities. He said that technology has the ability to alter the functioning of our financial markets. The government is exploring prospects to employ DLT for customs, international commerce, and sovereign debt instruments in the United Kingdom.
Fuller said that the United Kingdom is the premier fintech centre in Europe, second only to the United States internationally. The government seeks to establish a worldwide competitive advantage in the crypto area for the United Kingdom. Thus, the UK crypto business will be able to attract investment, create employment, earn tax income, and develop innovative goods and services.
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