The Government did agree with MPs that it needs to study the new technologies cryptoassets are created and traded with as they might have wider benefits for consumers and financial services, particularly for cross-border deals and transfers.
The Government and regulators plan to set up so-called Financial Market Infrastructure sandboxes for companies to experiment with blockchain technology, in an effort to make the market more “efficient, resilient and transparent”. The EU recently approved the world’s first set of rules for trading cryptoassets, which are expected to come into force next year. However, Nasdaq, the US tech-focused stock exchange, has stopped its plans to set up a cryptocurrency custody service, citing regulatory uncertainty. The tech-focused US exchange operator has been among the leaders trying to help make it suitable for financial clients.