The crypto sector received positive news as Britain launched a renewed effort to establish itself as a leading global crypto hub. However, the Europen nation faces significant challenges, including pushback from domestic entrepreneurs and fierce competition from the US under President-elect Donald Trump.
The Labour government in Britain has promised to make the country a destination for crypto companies and blockchain-related businesses to thrive.
In a recent interview, Tulip Siddiq, the UK’s Economic Secretary to the Treasury, said that the government wants to work with businesses on draft laws for digital assets like stablecoins (tokens whose value is tied to the value of sovereign currencies) “as early as possible next year.”
British assertions about its crypto hub rebrand
According to reports, Britain’s Economic secretary asserted that the government would not look at crypto-staking services as collective investment plans. The reason is that the services give users rewards based on the number of tokens they hold. Insiders in the crypto business were worried that this kind of treatment would have led to too many rules and regulations.
Poppy Gustafsson, Britain’s investment minister, said, “The government is committed to fostering and embracing blockchain.” He continued to say that they are already taking decisive steps to support this sector and ensure that the nation stays at the forefront of this global innovation.
In an event, Gustafsson also said, “This is a sector with enormous potential and a sector that’s already playing a central role in the UK’s vibrant tech landscape.”
Its Digital Securities Sandbox is a testbed for researching novel solutions based on distributed ledger technology for the issuance, trading, and settlement of securities in a live regulated environment.
An additional case in point is the “digital gilt” pilot program that was introduced just last month with the intention of issuing blockchain-based UK government bonds.
What are the odds the UK rivals the US in the global arena?
According to a survey released last month, the average value of crypto held by Brits rose from £1,595 ($2,021) a year ago to £1,842 ($2,334) this year. The growth highlights the increasing demand for crypto products in the country.
In addition, Gordon of Coinbase said, “The UK has done a lot of work.” He explained that the United Kingdom has a great chance of succeeding in this field, but regulations must be clear.
Britain now has a plan to regulate crypto. However, leaders in the crypto business are worried that waiting until 2026 to start a full regime could put the country behind its peers across the Atlantic.
In addition, the CEO of KR1, an exchange-listed digital asset investment company with a focus on blockchain technology, George McDonaugh, complained that the outdated regulations in the UK are preventing crypto-focused investment firms like his from achieving greater public recognition.
On the other hand, Trump ran on a platform that was overtly positive toward crypto. He promised not to sell the Bitcoin that the federal government holds. He also promised to replace Gary Gensler as chair of the Securities and Exchange Commission (SEC) because of his harsh enforcement regime on crypto firms.
Following Trump’s victory, the entire crypto sector has experienced a major change, with many currencies entering bullish trajectories. This is perhaps the most compelling illustration of the US’s impact on the sector.
Britain has been advised to follow the US’s lead, which is the right thing to do. That way, it won’t just be passive beneficiaries of blockchain or AI technology. Rather, it can play a big part in ensuring that these technologies bring value to the country.
Still, Britain would need some modification in applying rules to meet unique circumstances in respective countries.
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