The United Kingdom wants to become the world leader in cryptocurrencies thanks to stablecoins and NFTs
The UK is opening the way for the development of cryptocurrencies. According to preliminary data, the heads of state announced the easing of taxation on digital assets and the acceptance of stablecoins as payments at the level of alternative financial resources. It is also about creating its own non-fungible token (NFT).
The United Kingdom has announced the acceptance of stablecoins as payments
The UK aims to become a “global hub for cryptocurrency technology and investment”. In particular, the development of the cryptocurrency sector was announced by the government in its press release on April 4, 2022. Among the specific planned actions of the leadership is to attract businesses in this area to the kingdom’s market, which will “make the British tax system more competitive.”
In particular, it is a matter of reducing taxes on enterprises and users. According to The Economic Secretary to the Treasury of the United Kingdom, the state tax system does not need significant changes, as it considers it quite suitable for digital assets. There is also talk of simplified access to cryptocurrencies for fund managers and the introduction of new features such as decentralized financing (DeFi) and lending to the tax system.
“My ambition is to make Britain a global center of cryptocurrency technology.”
In addition to expanding opportunities in the tax system, it is also about creating new jobs in the field of cryptocurrencies. In his speech, Chancellor and Second Lord of the Treasury Rishi Sunak said: “My ambition is to make Britain a global center of cryptocurrency technology. The measures we have outlined today will help ensure that businesses can invest, innovate and grow in this country.” The statement also referred to the development of stablecoins as digital assets, which “should be introduced into regulation that will open the way for use in the UK as a recognized form of payment.”
Stablecoins open up a new opportunity to pay for goods and services, although the top of the United Kingdom has not yet announced which cryptocurrencies are in question. “By recognizing the potential of this technology and regulating it, we can ensure financial stability and provide consumers with a greater choice of payments,” Rishi Sunak said on Twitter.
The British government also does not rule out the possibility of involving decentralized autonomous organizations (DAO). John Glenn, the UK’s finance minister, has asked the Legal Commission to review DAO’s legal status. “We are not going to lower our standards, but we will keep our technology-neutral approach. The presence of reliable and effective regulation will not hinder innovation, but will stimulate it,” the Minister explained.
The release of the official NFT is expected before early summer 2022
The UK government intends to issue an officially fixed token (NFT) and continue to develop in the field of cryptocurrencies. It will be recalled that the official NFT is planned to be released by the beginning of summer 2022. This task will be the responsibility of the authorized body, namely the Royal Mint.
I also need the government to set up a blockchain system in the UK financial markets to optimize them and ensure “decentralized synchronization and data exchange to potentially achieve greater efficiency, transparency, and sustainability”. Therefore, the government is currently implementing actions to test the functions of the blockchain and has even set up a research program to evaluate the blockchain in the context of sovereign debt management.
The development of the cryptocurrency sector in the United Kingdom is not without consultations with experts in this field. For better integration, a “Crypto Asset Attraction Team” will be established to provide advice on digital assets. Negotiations between the Financial Control Authority (FCA) and companies in the industry are also scheduled for May 2022.
The current situation in the field of cryptocurrencies in the UK
Until now, the United Kingdom has been quite conservative in the development of cryptocurrencies and has been meticulous about any innovations in this area. In particular, certain regulations were introduced at the state level, which became a direct obstacle to the development of cryptocurrency companies. Examples include the Crypto.com (CRO), Coinbase, and eToro platforms, which were forced to abandon several advertising campaigns due to restrictions by regulators. A tax has also been introduced on all UK exchanges by the HMRC and the closure of all UK Bitcoin ATMs (BTC) has been announced. Therefore, after these restrictive measures, the UK government’s desire to develop the financial system through cryptocurrencies is quite unexpected.
The Belgian site bit4you, which has significant authority in the cryptocurrency trade, offers its customers to use each of the important features to start an exchange. All the necessary resources include trading more than 45 types of tokens, web wallet administration, news in the field of digital forms of money, and much more. Despite all the benefits, the site additionally provides access to the demo mode. In this way, each client will actually be able to receive USDT 100,000 for the practice of digital money trading. So quickly register on bit4you and start a fruitful exchange.
Marta Krysan, Team bit4you.
