UK Government Announces NFT, Stablecoin Recognition

    Today, the UK Government announced plans to recognize stablecoins as a “valid form of payment.” They also announced plans for the Royal Mint to create an official government-backed NFT.

    In a statement posted to the official UK government website, the government announced official plans to bring stablecoins “within regulation paving their way for use in the UK as a recognized form of payment.” The government wants to make the UK a “global hub for crypto asset technology and investment.”

    The plans include creating legislation for a “financial market infrastructure sandbox to help firms innovate.” This will enable firms to experiment and innovate in financial infrastructure services.

    The statement announced that FCA-led CryptoSprint will be working with the Royal Mint to launch an official NFT, as well as an ‘engagement group’ to work more closely with the industry.

    The engagement group will work with key figures from the regulatory authorities and industry to advise the government on issues facing the cryptoasset sector.

    In May, the Financial Conduct Authority will hold a two day ‘CryptoSprint’ seeking views directly from industry participants on key issues relating to the development of a future cryptoasset regime.

    The Chancellor has commissioned the Royal mint to create an official NFT in May.

    Rishi Sunak, Chancellor of the Exchequer

    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.

    Chancellor of the Exchequer, Rishi Sunak

    The statement read that “By recognizing the potential of this technology and regulating it now, the government can ensure financial stability and high regulatory standards so that these new technologies can ultimately be used both reliably and safely.”

    The UK government will also re-examine how DeFi loans are treated for tax purposes. The government will also consult on extending the scope of the Investment Manager Tax Exemption to include Cryptoassets.

    The publication follows a years worth of consultation of cryptoassets and stablecoins.

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