In an effort to boost economic growth post-Brexit, Chancellor of the Exchequer Jeremy Hunt announced a package of 30 regulatory reforms for the UK’s financial services. The creation of a digital pound, experiments with blockchain, and increased investment in crypto businesses all made the cut.
The Chancellor’s 30-point Edinburgh Reforms, released on Friday, are intended to “turbocharge growth,” with one of them urging the UK’s financial sector to be at the forefront of innovation.
The government has committed to publishing a consultation on the establishment of a central bank digital currency for the United Kingdom. As many jurisdictions around the world scramble to issue their own central bank-backed digital coin, the Treasury and the Bank of England continue to investigate the digital pound.
Crypto assets are also benefiting from a favorable trend. The Investment Management Exemption will be extended to crypto, encouraging foreign investors to invest in the UK’s crypto industry.
The government is renewing its commitment to a Financial Markets Infrastructure Sandbox, in which firms will be able to experiment with decentralized technologies in a regulated environment. The sandbox is scheduled to open in 2023.
The package also includes consumer protection from emerging technologies. The government intends to reform the Consumer Credit Act of 1974 in order to encourage innovation and reduce costs.
