According to Bim Afolami, the economic secretary to the Treasury of the United Kingdom, the government is focusing on enhancing the payment environment and establishing clear regulations for blockchain and digital assets.
The UK Treasury plans to promote domestic innovation in blockchain technology and digital assets by July by presenting a legislative framework for stablecoins and crypto assets.
Speaking at the Innovate Finance Global Summit (IFGS) 2024, Bim Afolami, the economic secretary to the Treasury of the United Kingdom, disclosed the government’s persistent effort to establish the framework for reforming the nation’s payment system.
Afolami elaborated by saying that the British government views laws through the lens of striking a balance between consumer protection and business innovation.
In order to present the final proposals that “deal with stablecoin and (crypto) staking” by June or July, the U.K. Treasury is hard at work on them. Also, the minister said:
“When it launches, an extensive number of cryptocurrency-related operations, such as acting as an exchange and holding client funds, would finally fall under the control of regulators.”
In addition, Afolami formed an open finance task group, which he disclosed during the conference. “To further CFIT’s SME lending use case for open finance, the task group will provide a transparent set of recommendations, identifying the datasets of business incentives that are required,” he said.
Crypto assets held by exchanges and custodial wallet providers will be accessible to UK authorities on April 26.
Amendments to the Economic Crime and Corporate Transparency Act 2023 give the National Crime Agency more authority to seize cryptocurrency assets it suspects are associated with criminal activity without requiring lengthy legal processes; this power is now in force.
Although it didn’t specify how to do so, the standard procedure for destroying cryptocurrency tokens involves sending them to a burn wallet address and then removing them from circulation.
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