The UK Government to Investigate Difficulty Faced by Licensed Crypto Firms
The UK’s finance minister has pledged to investigate the reported difficulties faced by licensed crypto firms in opening business accounts in the country. Chancellor of the Exchequer Jeremy Hunt agreed to meet with the Economic Secretary of the Treasury Bim Afolami to discuss this issue after being questioned about it by Chair of the Crypto and Digital Assets All-Party Parliamentary Group Lisa Cameron. Hunt also emphasized that the UK, particularly London, has become a global hub for crypto.
To ensure responsible growth of the crypto market, Hunt stated that regulation is necessary. The UK government has already introduced legislation for stablecoins and the promotion of crypto services.
The UK’s New Regulations for Testing Digital Securities
The UK government has published new regulations for supervising a sandbox dedicated to tokenized securities. These regulations, which come into force on January 8, 2024, are part of the Financial Services and Markets Act 2023 (FSMA). They provide guidelines for the Digital Securities Sandbox (DSS) and define its limitations and eligibility criteria for participants. The DSS will enable regulators and companies to test solutions involving distributed ledger technology and the tokenization of securities.
Hot Take: The UK Government Addresses Challenges Faced by Crypto Firms
The UK government’s commitment to investigating and addressing the difficulties faced by licensed crypto firms in opening business accounts demonstrates its dedication to fostering a thriving crypto market. By regulating the industry and introducing legislation for stablecoins and crypto services, the government aims to ensure responsible growth while positioning itself as a global hub for cryptocurrencies. Furthermore, the new regulations governing the Digital Securities Sandbox will provide a structured framework for testing innovative solutions related to tokenized securities, further solidifying the UK’s position in the crypto space.
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