The government appears to be rowing back on plans to boost the UK’s crypto sector following the implosion of one of the industry’s biggest exchanges.
In a statement in April, the Treasury announced plans to establish Britain as a ‘global cryptoasset technology hub’ and make stablecoins, a form of crypto that maintains a constant value, ‘a valid form of payment’.
The plans were hailed by Rishi Sunak, then Chancellor of the Exchequer, who said it was his ‘ambition’ that the UK would allow firms in the industry to ‘invest, innovate and scale up in this country’.
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He added: ‘This is part of our plan to ensure the UK financial services industry is always at the forefront of technology and innovation.’
But when asked by the Mail for an update on the plans, the Treasury struck a much more neutral tone, saying the Government was now focused on bringing ‘certain cryptoasset activities into the scope of UK regulation’.
A spokesman said: ‘The UK is committed to creating a regulatory environment in which firms can innovate, while crucially maintaining financial stability and regulatory standards so that people and businesses can use new technologies both reliably and safely.’
The much more tepid take on digital currencies follows a series of bankruptcies that have rocked the crypto sector in recent months including the collapse of the FTX exchange and the arrest of founder Sam Bankman-Fried.
