City Minister Andrew Griffith is championing the role of crypto in London’s financial portfolio, asserting their importance in the city’s tech, payment, and clearance technologies sectors.
He perceives London as a potential “honest broker” in the regulation of emerging domains such as cryptocurrencies and AI, capitalizing on its reputation for quality and trust.
Aspirations to Make London an ‘Honest Broker’ of Crypto
As Griffith stated in a recent conversation with David Merritt,
“I think it builds naturally on our strengths in terms of things like tech and payments, technologies and clearance.”
He further expressed the potential for London to be “a bit of an honest broker” in the regulation of emerging technologies. Griffith suggests that while other regimes may be more dynamic, they lack the quality and trust attributes inherent to London.
This view aligns with the recent enactment of the Financial Services and Markets Act 2023. This landmark legislation, a product of the UK’s independent financial rule-making post-Brexit, advocates for the regulation of cryptoassets to encourage their broader acceptance.
Fine Tuning Crypto Regulations
The Act, which Economic Secretary to the Treasury Andrew Griffith hails as a “banner year” for financial reforms, is a response to the UK’s stagnant economy. The country is still grappling with the highest inflation in the G7 and struggling to recover from the COVID-19 pandemic. It has seen minimal GDP growth in the first quarter of 2023.
Griffith asserted,
“This landmark piece of legislation gives us control of our financial services rulebook, so it supports UK businesses and consumers and drives growth. By repealing old EU laws set in Brussels it will unlock billions in investment – cash that can unlock innovation and grow the economy.”
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
The Act also paves the way for implementing the Edinburgh Reforms, designed to bolster the financial services sector. These reforms expand the remits of the country’s financial regulators to focus on growth and international competitiveness.
Cryptoassets like stablecoins will now fall under the official jurisdiction of the country’s financial regulators. Furthermore, ‘sandboxes’ will be established to facilitate the safe adoption of emerging technologies like blockchain in financial markets.
London maintains its status as a global finance center, with Griffith recognizing crypto as crucial to the city’s portfolio. Recent legislative developments further solidify this viewpoint.
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