British minister confirms country's ambition to become a global cryptohub
London's reputation as a major financial center needs support, and the government intends to significantly change financial regulations to improve competitiveness in the market for traditional and cryptocurrency assets
U.K. Treasury Secretary Andrew Griffith has confirmed the government's ambition to make Britain a global hub for crypto-assets and blockchain technology, Reuters wrote. The publication notes that this will be a continuation of Britain's current role as a global fintech center.
Britain's reputation as a major financial center was severely damaged in September by the budget initiatives of the Liz Truss government, when the Bank of England was forced to intervene in the market. In addition, London faces great competition from centers such as Paris and Frankfurt, New York and Singapore.
The Treasury Department promised a "Big Bang 2.0," which would change financial regulations to make London more globally competitive, according to the publication. The U.K. will change current regulations to allow banks to take on more risk to help maintain the City of London's status as the world's leading financial center, the minister said.
In addition to the changes outlined in traditional finance, Griffith noted the great potential of stablcoins backed by fiat currencies. According to the minister, they could become a really important mechanism for future payments.
In late October, members of the lower house of Parliament voted to recognize cryptocurrencies as regulated financial instruments. According to the government of the country, it is necessary to accept cryptocurrencies as another type of financial assets, rather than singling them out as a separate class.
This bill already implied the extension of existing rules to staplecoins tied to the value of fiat currencies or assets such as gold.