The UK needs to develop a common strategy across government, regulators and the legal system if it wants to be a global leader in crypto, according to a report by Innovate Finance.
In a paper prepared by the industry association with Shearman & Sterling for the House of Commons Treasury Committee Inquiry into the Crypto Asset Industry, Innovate Finance argues that the application of digital assets and digitization in financial systems and services are significant, real things will create value and benefit.
“The UK has an opportunity to capitalize on this economic and social value, both domestically and globally,” the paper says, adding that the country’s position in global finance is partly determined by its approach to the emerging sector becomes.
This year, Singapore has overtaken the UK as the number two destination for investing in DLT and crypto-asset-based businesses.
To fight back and secure its place at the top, the country must have a common strategy from government, regulators, and the legal system that considers both the potential benefits and risks of crypto technologies and provides clarity for businesses and consumers involved interact with them, the newspaper said.
There also needs to be an ongoing review of UK laws and regulations to ensure they provide the basis for recognizing digital assets and digital transactions, as well as improving the responsiveness and service level of UK regulators when processing applications for new businesses in the sector .
Separately, Ousmène Jacques Mandeng, Visiting Fellow at LSE and Blockchain Advisor at Accenture, has called for the introduction of a CBDC and the issuance of blockchain-based gilts to support the City of London’s competitiveness.
He writes, “The bank launching wholesale CBDC and the Treasury Department’s announcement that a significant proportion of gilts will be issued on blockchain could be catalysts for the adoption of blockchain-based financial applications. It could be the nudge the market needs, as the benefits are likely to extend far beyond the city.
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