UK looks to recognise cryptocurrencies for payments

The UK government has announced it plans to introduce regulation that will recognise the use of certain cryptocurrencies for payment.

The government is planning to bring ‘stablecoins’, cryptocurrencies tied to real-world assets such as the value of the US dollar, within legislation for payments as part of plans to make the UK a leading hub for cryptoasset technology and investment.

Plans also include establishing a Cryptoasset Engagement Group to collaborate with the sector, and the launch of the Royal Mint’s first Non-Fungible Token (NFT) to mark the new approach to cryptocurrencies.

Chancellor of the Exchequer, Rishi Sunak said:

“It’s my ambition to make the UK a global hub for cryptoasset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country.

“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.

“This is part of our plan to ensure the UK financial services industry is always at the forefront of technology and innovation.”

Plans for stablecoins to be recognised will see high regulatory standards introduced to ensure cryptoassets can be used safely and reliably to make payments, and create conditions to encourage issuers and service providers to operate and invest in the UK.