John Glen MP, Economic Secretary to the Treasury of the United Kingdom, spoke at the Innovate Finance Global Summit – the flagship event of UK FinTech Week – where he discussed the landscape of FinTech in the UK, and announced new legislative developments on stablecoins and other crypto assets.

His key points included: 

• New legislation on stablecoins: “We will be legislating to bring certain stablecoins into our payments framework, creating the conditions for stablecoin issuers and service providers to operate and grow in the UK.

“This will also enable consumers to use stablecoin payment services with confidence, and the government will introduce this legislation, as part of an ambition to deliver a world-leading regulatory regime for stablecoins.”

• The UK leading on crypto-technologies: “If crypto-technologies are going to be a big part of the future, then we – the UK – want to be in, and in on the ground floor. In fact, if we commit now, if we act now, we can lead the way.”

“We hear the concerns, some of which are valid. That’s why, in this country, we’ve already said that we’ll seek to protect consumers by legislating to bring certain cryptoassets into the scope of financial promotions regulation, and it’s essential that investors understand the risks they are taking.

“We see enormous potential in crypto, and we want to give ourselves every chance to take maximum advantage. We aren’t going to lower our standards, but we are going to maintain our technologically-neutral approach. Having robust and effective regulation won’t hinder innovation, it’ll actually boost it – by giving people and businesses the confidence they need to think and invest for the long-term.

“We wanted, in the first instance, to focus on areas of immediate potential and concern in the crypto sphere – hence our work on stablecoin.”

• The Chancellor introducing an NFTs: “The Chancellor has asked the Royal Mint to create a non-fungible token – an NFT – to be issued by the Summer, an emblem of the forward-looking approach we are determined to take… and there will be more details available very soon.”

Responding to the speech, Janine Hirt (CEO of Innovate Finance) said: “This was a landmark speech setting out a vision for the UK to be the leading hub for technology that will transform payments, capital markets infrastructure and ESG assurance. John Glen set out a comprehensive programme of work with regulators that includes bringing stablecoin into the regulated space, a more flexible ‘beta testing’ approach to regulation, and updating the tax and legal basis for digital assets and DeFi. At Innovate Finance we have been calling for a Government vision of the opportunity of digital assets and DLT. Today the Government did this and set out what we have also been calling for - a joined up strategy with regulators, a sandbox approach to regulation and better industry engagement and a sense of pace. We now look forward to supporting industry collaboration with Government.”