Rishi Sunak drives UK towards global crypto hub

UK Government taking action to boost crypto industry at last

After a 45-day term of office of Prime Minister Liz Truss, which was full of numerous controversial decisions and which ended with the sudden resignation of the head of the British government, she will be replaced by Rishi Sunak - who was the Minister of Treasury in Boris Johnson's government. Back then, one of his main goals was for the UK to become the center of blockchain technology and cryptocurrency investments. With his new position, Sunak has the opportunity to implement this plan with his government.

It was on the initiative of the newly appointed prime minister that the draft Act on Financial Services and Markets was proposed, which, if it comes into force, will give local regulators a wide range of competences in the area of ​​digital currencies. Although the new government of Liz Truss has committed to continue its policy in this area, her resignation has raised concerns among representatives of the cryptocurrency industry. Undoubtedly, the election of Sunak as the new prime minister will be met with enthusiasm by them.

Already at the stage of April this year, the British government announced the introduction of a number of initiatives aimed at making the UK a center of technology and crypto investments. Rishi Sunak, who was then the Minister of the Treasury, stated:

“The assumptions that have been outlined in the latest draft law enforced by the government will help ensure that companies will be able to invest, increase their innovation and the scope of activities in our country.

Great Britain will become the world leader in stablecoin regulation

One of the first steps was to introduce stablecoins into the British payment system. As we learned from a statement by then Minister of State at the Treasury, John Glen, “This will enable consumers to make extensive use of stablecoin payment services […] The government will introduce these laws as part of a long-term plan to make the UK a world leader in the regulatory framework for stablecoins. "

The premise for proposing new legal regulations in this area was largely the May collapse of the Terra Luna ecosystem along with the UST stablecoin, which rapidly lost its link with the US dollar.