UK Treasury-Ordered Report Calls for A 5 Point Plan; Includes FinTech Fund & Crypto Regulation
Treasury report based on the U.K. fintech, concludes govt needs to run a specific regime for Crypto-asset's regulations and control.
U.K. chancellor, Rishi Sunak, triggered that review back in March 2020, under Ron Khalifa's supervision (former WorldPay boss). Afterward, the Treasury-ordered review points out a plan to make U.K.'s fintech a leading market in the world.
According to the report named “Khalifa Review of U.K. Fintech,” the country can play a vital role in crypto-mania and become a globally recognized center for trade, issuance, clearance, and exchange of cryptocurrencies.
Khalifa addressed the European finance's progress after the crypto favored the proposal, MiCA (Markets in Crypto-assets), has come in force, so the U.K. also has to “act quickly” to put its fintech firms ahead of the curve. Khalifa's Review states,
“The U.K. should aim to be at least as broad in ambition as MiCA – but should also consider whether it can develop a bespoke regime that is more innovation-driven. A bespoke regime for crypto assets should adopt a functional and technology-neutral approach, in line with the principles of the current regulatory framework, as well as the concept of ‘same risk, same regulation,' while being tailored to the risks arising from crypto asset-related activitie.”
Also, there are no reasons to be ‘flexible' to do with future challenges such as Decentralized Finance (DeFi), another spot that needs attention for being regulated in the state, says the report.
The review concludes that to have engagement in deploying policies and regulations for crypto-favored areas, U.K. must join the group of international regulators, Global Financial Innovation Network (GFIN).
The U.K. Treasury has announced a consultation worldwide that started in January to depict the regulatory experience approached digital currencies and stablecoins. The program is still accepting feedback till March 3.
U.K. commissions have been aggressive to crypto trading and investments so far. On January 6, derivatives and exchange-traded notes sale was shut down by Financial Conduct Authority (FCA) which alleged the products ill-suited due to the potential harm they pose.