In particular, it will assess the potential benefits of using these technologies in the framework of sovereign debt instruments.
“We want to see the businesses of tomorrow, and the jobs they will create, here in the UK. By regulating effectively we can give them the confidence they need to think and invest for the long term,” said Chancellor of the Exchequer Rishi Sunak.
“My ambition is to make the UK a global hub for crypto asset technologies. The measures we have announced today will help ensure that firms can invest, innovate and grow in this country,” he added.
The Government will review the taxation associated with loans and other financial services with cryptocurrencies between individuals, known as Decentralized Finance (DeFi, in English), among other measures.
The Secretary of State for the Economy, John Glen, stressed in a speech at the FinTech Week fair in London that he aspires to make the United Kingdom “a hospitable place for cryptocurrencies”, in order to “attract investment, generate a multitude of jobs and create a wave of innovative new products and services.
“If there is one message that I want to make clear today it is that the UK is open for business, open for crypto business,” Glen stressed.
He admitted that cryptocurrencies “have proven to be attractive to criminals and hostile states”, although he assured that the Government “has actively taken steps to prevent their misuse”.
He also stressed that there is concern about the environmental impact of the digital mining processes of some cryptocurrencies, which require large amounts of energy, and assured that they will “study in detail” these aspects to also promote the United Kingdom as “the world’s leading center in green finance “.
Despite the potential dangers, Glen underscored the “enormous potential” he sees in crypto assets.
“We want to make sure that we have the opportunity to get the most out of it. We are not going to lower our standards, but we are going to maintain a technologically neutral perspective,” added the secretary of state.
