TechFlow news, the UK Treasury announced on its official website a series of initiatives to recognize stablecoins as a valid form of payment, as part of a broader plan to make the UK a global hub for cryptoasset technology and investment.
The document states that with appropriate regulation, stablecoins can offer more efficient payment methods and expand consumer choice. The UK government plans to introduce legislation bringing stablecoins used as means of payment into the existing payment regulatory framework, creating conditions for stablecoin issuers and service providers to operate and invest in the UK.
At the same time, the UK government plans to legislate for a Financial Market Infrastructure (FMI) sandbox, enabling companies to experiment and innovate in providing market-critical infrastructure services, particularly through testing distributed ledger technology (DLT). The government has confirmed it will launch a research program to explore the feasibility and potential benefits of using DLT for sovereign debt instruments.
In addition, the UK government will also consult on expanding the scope of investment manager exemptions to include cryptoassets. The Chancellor has commissioned the Royal Mint to create an NFT by this summer. The Economic Secretary will establish and chair a Cryptoasset Engagement Group, convening key figures from regulators and industry to advise the government on issues facing the cryptoasset sector.
