Despite the FTX Collapse, UK Wants to Become the Global Crypto Hub

• British MPs and financial pundits are trying to gauge both the pros and cons of the crypto industry.
• MP Andrew Griffith notified the Treasury Committee of the recent crypto developments.
• As per Griffith, the government plans to accept the underlying technology used in cryptos.

Despite the aftermath caused by the collapse of leading crypto exchange FTX, the UK still wants to become a global crypto hub. As per latest reports, British MPs and financial pundits are trying to gauge both the benefits and risks of approving the crypto industry to thrive in the UK.

The Economic Secretary to the Treasury, Andrew Griffith, notified the UK government’s Treasury Committee of the recent crypto developments. Griffith noted that the government plans to accept the underlying technology used in digital assets like Bitcoin, Ethereum, and Cardano.

He said that the government is weighing on taxation and crypto regulations, as it continues to consider central bank digital currencies (CBDC), stablecoins, and non-fungible tokens (NFTs).

He further added: 

There’s a very wide range of forecasts in the market that reveal the benefits to the UK economy from embracing crypto assets and its underlying technology, such as distributed ledger technology and blockchain.

Griffith also claimed that the government must make the most of this new technology but also be prepared with regulations that protect consumers. However, the regulations must not hinder the safe use of this disruptive technology.

The UK government is also expected to introduce a consultation document that would focus on crypto regulation. The document would be created in partnership with the Bank of England to also cover topics like CBDC for the UK.

The UK government has always been at the forefront of supporting crypto assets. In October, the country’s new PM Rishi Sunak showed his support for CBDCs in a video shared on Twitter.