UK Chancellor of the Exchequer investigates banking issues facing national cryptocurrency companies
Britain’s Chancellor of the Exchequer said he would investigate claims that licensed cryptocurrency companies are having difficulty opening business accounts in the UK.
On Tuesday, UK Chancellor of the Exchequer Jeremy Hunt agreed to meet with Treasury and Economic Affairs Secretary Wim Apolami to discuss the issue. Hunt responded: question This is what Lisa Cameron, chair of the Cryptocurrency and Digital Assets All-Party Parliamentary Group, raised about the challenges facing licensed cryptocurrency companies in the UK.
Hunt responded that he would arrange a meeting with the British Treasury to investigate. He also took the opportunity to say that “the UK, and London in particular, has become a global cryptocurrency hub.”
“Cryptocurrency markets need to be regulated to ensure they can grow as intended and in a responsible manner, which is why we have introduced legislation to promote stablecoins and cryptocurrency services,” the Chancellor of the Exchequer added. .
In April 2022, UK Chancellor of the Exchequer Rishi Sunak unveiled plans to transform the UK into a ‘global cryptocurrency hub’. Since then, the UK has passed legislation to advance that goal, including new regulations to oversee the country’s digital securities sandbox initiative.
UK’s new rules for testing digital securities
According to an official publication, the new regulations will provide national financial watchdogs with rules for sandbox supervision of tokenized securities.
This regulation covers the UK’s Digital Securities Sandbox (DSS) and will come into effect on 8 January 2024. These regulations are part of the UK government’s Financial Services and Markets Act 2023 (FSMA).
The new rules set overall limits on what can be done within the sandbox and which participants can participate. The sandbox allows regulators and companies to test solutions, including distributed ledger technology and securities tokenization.
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