The United Kingdom’s Chancellor of the Exchequer Jeremy Hunt laid out a number of reforms aiming to “drive growth and competitiveness” to the country’s financial services sector including efforts that support the crypto space.
An announcement was made by the U.K. government highlighted that it will create a smarter regulatory framework for the country that it describes as “agile, less costly and more responsive to emerging trends.”
The announcement includes consulting on proposals for the creation of a central banking digital currency (CBDC), the extension of a crypto-tax break for investment manager, the introduction stablecoins to the regulatory perimeter, and the creation a sandbox which allows regulators and firms test new technologies with the potential for transforming financial markets.
These changes are part of the Financial Services and Markets bill, which was announced in October. Hunt explained that these changes will help the U.K. to be a globally competitive financial services hub. He explained:
“The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and home-grown regulatory regime that works in the interest of British people and our businesses.”
Hunt added that the government would continue to deliver reforms that hinder other industries, such as life sciences and digital technology.
Andrew Griffith, U.K. Economic Secretary to Treasury, claimed that reforms will result in smarter regulation for financial service providers. This reform, according to the government official, “will unleash growth and opportunity in cities across the U.K.”
Related: Bank of England raises interest rate to 3%, the biggest jump in 33-years
Because of the sector’s growth, the U.K. government opened an inquiry on Nov. 4. The U.K.’s Digital, Culture, Media and Sport Committee opened a public inquiry to assess NFT assets, before the U.K. Treasury can review them.