Chancellor Rishi Sunak has set out proposals to enhance the UK’s competitive advantage in fintech, from regulatory support and reforms to help firms grow to a new taskforce to lead the UK’s work on a central bank digital currency.
Mr Sunak confirmed the UK will be taking forward many of the recommendations made in the recent Fintech Review, led by Ron Kalifa, and the Listing Review, led by Lord Hill.
If you are in need of legal advice for your cryptocurrency or blockchain company book a free introductory call with our Cryptocurrency Lawyers.
To support fintech firms to scale up, the Financial Conduct Authority (FCA) will take forward a ‘scale box’; a package of measures to enhance its pioneering regulatory sandbox which allows start-ups to test new propositions and to provide a one-stop shop for growth stage firms.
Meanwhile, a second phase of the Digital Sandbox will enable firms to test concepts that tackle sustainability and climate change-related challenges, helping to deliver a greener financial sector that supports the transition to net zero.
The Chancellor also backed the creation of an industry-led Centre for Finance, Innovation and Technology (CFIT) and committed to work with regional and national fintech bodies to make it a reality.
The UK government says they want Britain to lead the world for fintech and crypto-companies with John Glen, UK Economic Secretary to the Treasury, stating “we want this country to be a global hub — the very best place in the world to start and scale crypto-companies.”
Almost half of the Fintech unicorns in Europe are based in the UK, and last year, the sector attracted more investment than France, Germany, Sweden, and the Netherlands combined, said Mr Glen.
Essentially, fintech involves the use of technology to facilitate financial services.
At JPP Law, our corporate finance team recognise the growth of fintech and can advise on all aspects of the law for companies in this emerging sector.
There are currently no specific fintech regulations, however, there are many legal issues to consider, such as data protection, and rules surrounding robo-advice. A robo-adviser is an online portfolio management service offering a simple way to start investing.
The Government has published a report on Distributed Ledger Technology. This states that the Government needs to consider how to put in place a regulatory framework for this emerging sector. This will evolve in tandem with the development of new implementations and applications for Distributed Ledger Technology.
Related Content
The rise of UK Fintech and the Future of Fintech Law
New PM hailed as Champion of Fintech
Funding Sources Continue to Grow for Innovative Tech
UK set to introduce Law to seize, freeze and recover cryptocurrency
