Chancellor of the Exchequer Jeremy Hunt shared a package of 30 regulatory reforms for the UK’s financial services, in an effort to boost economic growth post-Brexit. Issuing a digital pound, experimenting with blockchain and boosting investment in crypto businesses made the cut.
The Chancellor’s 30-point Edinburgh Reforms, released on Friday, are meant to “turbocharge growth.” Among them is a push for the UK's financial sector to be at the forefront of innovation.
The government is committing to publish a consultation on establishing a central bank digital currency for the UK. The Treasury and the Bank of England continue to investigate the digital pound, as plenty of jurisdictions around the world scramble to issue their own central bank-backed digital coin.
Crypto assets are also getting a lucky break. The Investment Management Exemption will extend to crypto, which will encourage overseas investors to bring their funds into the UK’s crypto industry.
The government is recommitting to a Financial Markets Infrastructure Sandbox, where firms will be able to experiment with decentralized technologies in a regulated space. The sandbox is expected to launch in 2023.
Consumer protection from emerging technologies also has a place in the package. The government is looking to reform the 1974 Consumer Credit Act to encourage innovation and cut costs.
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