The Treasury will create a financial market infrastructure sandpit in the next year.
The government would prioritize the revision of EU regulations for the five growth sectors.
The government of the United Kingdom has proposed over thirty changes to financial regulation, some of which include the expansion of tax benefits for investment managers to include crypto assets. To replace EU law in areas like disclosure for financial products, the so-called “Edinburgh Reforms” ease ring-fencing capital regulations to make life easier for smaller banks.
An official response to the consultation on broadening the Investment Manager Exemption to cover crypto assets will be made public as part of the announced measures, making it possible for these assets to be included in the portfolios of foreign funds managed in Great Britain without posing a risk of incurring UK taxation.
Revision of EU Regulations
Chancellor of the Exchequer Jeremy Hunt has said that the administration of Rishi Sunak intends to enact this move via HM Revenue & Customs rules before the end of the year.
Among the other steps outlined, the Treasury will create a financial market infrastructure sandpit in the next year, where businesses may experiment with and eventually implement technologies like distributed ledger technology.
According to Hunt, the government would prioritize the revision of EU regulations for the five growth sectors, and these changes will help the financial services industry become “globally competitive,” technologically sophisticated, and “acts in the interests of communities and citizens.”
In a statement, UK Chancellor Jeremy Hunt stated, “Our regulatory framework for financial services must support innovation and leadership in emerging areas of finance,” and that these changes will enhance the economy, boost employment, and help firms in all four UK countries.