U.K. Aims to Become a Crypto Hub as Government Eyes Creation of Own NFT

According to U.K. Economic Secretary to the Treasury John Glen, the country’s Finance Minister Rishi Sunak has urged the Royal Mint to create a government NFT targeted to be issued by the summer. The move forms part of the U.K.’s initiative to position itself at the forefront of the emerging technologies industry. “This decision shows the forward-looking approach we are determined to take towards cryptoassets in the UK,” tweeted the Treasury’s official account on Monday.

So far, details regarding the Royal Mint’s NFT remain slim including the image or object it will feature, if it will be used to generate funds for the ministry, or if would be developed at all. However, Glen affirmed that “there will be more details available very soon.” Sunak has earlier expressed that it is his aim to make the U.K. a global hub for cryptoasset technology but with close regulation. “We want to see the businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long term,” he explained.

The U.K. government has likewise outlined certain points in its effort to make this plan a reality. Among these include bringing stablecoins — digital assets attached to a fiat currency — into the U.K. payments framework allowing issuers and services providers to operate in the country; consulting on a “world-leading regime” to regulate the trading of crypto and other digital assets; legalizing decentralized autonomous organizations (DAOs); looking into the tax treatment of decentralized finance (DeFi) loans; establishing a Cryptoasset Engagement Group; and, finally, exploring the application of blockchain technology in issuing debt instruments.

Glen furthered that the government is also eyeing Web3 as it attempts to expand its understanding of the crypto space. “No one knows for sure yet how Web3 is going to look,” said Glen. “But there’s every chance that blockchain is going to be integral to its development. We want this country to be there, leading from the front, seeking out the greatest economic opportunities.”

Despite these developments, industry insiders are still unsure of the U.K.’s position on crypto. The Financial Conduct Authority (FCA) — the country’s financial regulatory body — had earlier neglected the registration of several crypto firms due to a number of “financial crime red flags” going unnoticed. Granted plenty of scams and hacks have riddled the ever-growing space.

Fairly recently, the FCA extended the deadline for crypto companies to register with the watchdog, and other firms — such as fintech firm Revolut and crypto start-up Copper — have also been given a temporary registration to continue with trading. Nonetheless, more companies have been forced to taper their operations in the U.K. as only 33 firms have since been approved by the FCA.

Sources: CNBC, The Guardian