The United Kingdom is facing an official call from the most powerful financial lobby group, TheCityUk, which is urging the country to become more interested in cryptocurrencies as well as DLT technology.
TheCityUK, which represents the industry that is the largest taxpayer, has issued a report highlighting in particular that the UK has a valuable opportunity to shape its response to DLT and crypto assets.
The most important recommendations from the call include:
- The UK should act quickly to set high standards in cryptoasset and DLT regulation, while recognising that not all uses of DLT need to be regulated.
- The specific features and risks associated with novel technologies and use cases should not be overlooked.
- Industry engagement should be maintained, as it is crucial to achieve a proportionate and risk-based approach.
- Legislators and regulators should recognise the transformative potential of stablecoins and Central Bank Digital Currencies (CBDCs).
Regarding the regulatory framework in this regard, TheCityUK calls on the government to promote an innovation-friendly business ecosystem by having a principles-based, outcome-focused approach to regulation. In this case, it would therefore be possible to react quickly and adapt existing regulatory frameworks and solutions, if necessary.
However, all this cannot work without a clearly defined legal definition, which this highly recognized body also draws attention to.
The call entitled "Shaping UK regulation for innovation and global leadership" is published on the official website of TheCityUK.