Key Takeaways:
- As Watchdog scrambles to regulate new digital assets, the UK, according to Matt, might become the home of cryptocurrency.
- The minister praised the UK’s burgeoning fintech industry in the Commons earlier today, asking that it become a sector in which the UK can be a world leader.
- The Financial Conduct Authority (“FCA”) published a Consultation Paper on January 19, 2022, proposing recommendations to improve the financial promotion laws that apply to high-risk investments, including cryptoasset marketing.
Hancock has long supported cryptocurrency, claiming that the government will use blockchain technology to track grant distribution in 2016.
“If done correctly, we can be more transparent and lead new technologies that will change the world,” he said today.
The United Kingdom has joined the race as cryptocurrencies continue to increase worldwide and more governments consider how to regulate them.
Matthew John David Hancock is a British politician. He served as Secretary of State for Health and Social Care from 2018 to 2021 and a six-month tenure as Secretary of State for Digital, Culture, Media, and Sport in 2018.
Matt Hancock, the current Member of Parliament for West Suffolk, made a case for UK policy around new developments such as FinTech and cryptocurrency to MPs in the House of Commons on January 26.
The Minister addressed the House of Commons today, praising the UK’s burgeoning fintech industry and saying that the country could become a global leader in the field.
“These innovations can disrupt finance, just as social media disrupts communication and online shopping has transformed retail”, Matt claimed.
“After Brexit, the UK has the opportunity to become the home of FinTech. FinTech not only provides the financial impetus but also provides transparency and helps reduce fraud and financial crime.”
The Minister sought to make sure that the new legislation enacted to assist and regulate growing sectors was fit for the future and capable of making Britain the epicentre of this change.
On the policy, Hancock stated:
“Will the Minister ensure at the same time as he develops this policy, ensure the UK is also home to innovations like FinTech and the extraordinary growth of cryptocurrencies? These innovations have the potential to disrupt finance, just as social media has disrupted communication, or online shopping has changed retail.”
The Minister sought to ensure that the new legislation enacted to assist and regulate growing sectors was “suitable for the future and could make Britain the home of this revolution.”
The United Kingdom, in particular, wants to embrace these technologies not just to avoid falling behind financially but also because the technology is transparent and will help in the fight against crime and fraud.
He proceeded to say, “The UK has the chance to be the home of FinTech, which can not only be an economic driver but also help cut fraud and financial crime because of the transparency that it brings.”
HM Treasury released the results of its July 2020 consultation on crypto-assets promotions on January 18, 2022. It stated that the UK government would implement steps that will effectively bring a broader range of cryptoassets under the UK’s financial services system.
Financial promotions relating to “qualifying cryptoassets” will either have to be made or approved by the UK authorised person (i.e., someone authorised in the UK by the Prudential Regulation Authority (“PRA”) or the Financial Conduct Authority (“FCA”) or fall under an existing exemption under the financial promotions regime. As a result, anyone who is not licenced in the UK – even situated elsewhere – will have a tough time promoting qualified cryptoassets to UK-based consumers.
