The U.K.’s most powerful regulatory body has cracked down on cryptocurrency NFT marketplace companies however, the government has issued a clear message about its blockchain strategy that the British are on the way.
The U.K. government on Monday revealed a massive move into cryptocurrency, including plans to create the nation’s own NFT.
“I am pleased to announce today the fact that the Treasury has requested for the Royal Mint to create a non-fungible token called known as an NFT… to be launched by the summer as a symbol of our forward-looking strategy that we’re determined to take,” John Glen the economic secretary of the Treasury stated in an address.
This announcement is part of a larger strategy for the country to “make the U.K. a global hub for the development of crypto-asset technology” and “to ensure that firms are able to invest, develop and scale-up in the U.K.,” Rishi Sunak, chief executive of the Exchequer announced in an announcement.
Its U.K. plan is to set the “financial market infrastructure Sandbox” in which crypto firms can test and develop their ideas and the creation of a crypto engagement team that will collaborate with the crypto sector and look at ways to improve U.K. taxes more efficiently to the crypto-assets market.
This announcement is made at the time that crypto appears to be under increased regulatory scrutiny across the U.K. and illustrates the tensions in play as governments simultaneously perceive an opportunity solisstudios to make money by supporting the growth of crypto as a growing financial sector, and are seeking to reduce the risk of non-regulated markets for digital assets.
The Financial Conduct Authority has ordered firms offering crypto-related items and products to sign up to the British regulator and the Advertising Standards Authority has sent warnings to companies who are making use of FOMO or funny memes to promote crypto.
The FCA also warned people about the fact that cryptocurrency investments are “high-risk” as well as “people must be ready to lose all their savings when they decide to invest in these assets.”
The announcement of the U.K. crypto strategy also comes in the wake of the controversial EU vote that effectively prohibits anonymous crypto transactions within the region.
“We are aware of worries … certain of which are legitimate,” Glen said. “We’ve previously stated that we will be looking to protect consumers by enacting legislation that brings certain crypto assets within the financial promotion regulations … It’s crucial that investors are aware of the risks they’re taking.”
