In an attempt to make the UK a global cryptocurrency hub, the government has extended tax breaks for investment managers. Part of the financial services reforms released today indicated investors can use U.K based investment managers without incurring extra taxes.
Further, the reforms will come into effect before the end of the year. Recall that last October, Minister Andrew Griffith expressed his intention to tap into the industry, and make use of every available opportunity. Then, the minister promised to consult relevant bodies and stakeholders within UK on how to use legislative stipulations enacted in the Financial Services and Market Bill. As revealed, Andrew Griffith promised to commence the consultation before the Christmas Holiday.
Additionally, the proposed financial services reforms highlight how to best replace existing laws in the UK. These stipulations include European Union Banking and Financial-market laws. These changes are targeted towards projecting the United Kingdom as a force to reckon with in the sector.
Also, the Treasury intends to commence a “Sandbox” pilot program to test the dynamism of the financial market next year. However, a part of the statement today reveals plans on the introduction of a Central Bank Digital Currency (CBDC). As part of the plans, the Treasury of UK will commence consultation for the virtual Pound in few weeks.
The emergence of Rishi Sunak as the Prime Minister of the UK spurred high hopes among cryptocurrency enthusiasts. This is due to the high regard the Prime Minister holds for cryptocurrency. In April, while serving as the Finance Minister, Sunak said he seeks to establish the United Kingdom as a global crypto hub.
Cryptocurrency regulation in the UK
Under Rishi Sunak’s watch, the industry is tipped to flourish by cryptocurrency enthusiasts. Till now, cryptocurrency is yet to get a well stipulated regulation. However, the Financial Conduct Authority which is the UK’s main financial regulatory institution has been discharging some oversights functions on the industry.
Similarly, the FCA regulates cryptocurrency assets that services as investment, share or debt instruments. Likewise, the body also ensure that cryptocurrency exchange/ in the UK complies with its anti-money laundering policies. The FCA as well have oversight jurisdiction in ensuring that cryptocurrency firm doesn’t facilitate the financing of terrorism.
Among other regulators in the country is the UK Advertising Standards Agency (ASA). The body has oversight powers over promotion of cryptocurrency and other virtual assets. ASA regulates the use of social media and the internet to facilitate cryptocurrency promotion. Despite the presence of these bodies and their duties in the sector, investors still expect a clear cut regulation for crypto in the country.