UK Aims to Become a Crypto Hub: Regulation Expected Within a Year

The United Kingdom is aiming to become a global crypto hub by rolling out digital asset regulation within the next 12 months, according to Andrew Griffith, the economic secretary to the UK Treasury. The UK government is keen to promote innovation while ensuring progressive regulation that enables firms to make the most of the opportunities from crypto assets.

Speaking to CNBC, Griffith said that the UK is well-positioned to regulate the crypto ecosystem in a proportionate manner, now that it has exited the European Union. He pointed out that the UK has control back of a rule book, which is something it has not had for decades, and this provides the ability to move in an agile and proportionate way.

The regulatory framework will consist of a combination of existing financial asset laws and new crypto-specific rules. Griffith highlighted that wherever possible, the UK wants to see the same asset regulated in the same way, but there are some additional opportunities in the crypto asset or distributed ledger space that the UK wants to take advantage of.

Griffith also revealed that the regulation of stablecoins is included in the financial services bill, and it is coming even sooner than the broader crypto regulatory framework. However, he admitted that it would take time before the UK launches a sovereign digital currency, as it requires the highest level of resilience and infrastructure.

The UK has been working hard to become a crypto hub and take advantage of the benefits that blockchain technology can bring to the private sector and the economy. The country is currently in a growth mindset and seeking to maximise the economic efforts led by tech innovation in the private sector.

Coinbase CEO Brian Armstrong recently spoke at the Fintech Week in London, revealing that the crypto exchange could relocate from the US due to regulatory uncertainties. The UK's progressive approach to regulation is likely to make it an attractive destination for crypto businesses seeking a supportive regulatory environment.

In conclusion, the UK's plans to roll out digital asset regulation within a year are a positive development for the crypto industry. The UK has the potential to become a global crypto hub, promoting innovation while ensuring sound regulation that enables firms to make the most of the opportunities from crypto assets. The regulation of stablecoins is coming even sooner than the broader crypto regulatory framework, demonstrating the UK's commitment to moving quickly and taking advantage of opportunities in the crypto asset or distributed ledger space.