“British Chancellor of the Exchequer to Investigate Banking Challenges Faced by Cryptocurrency Companies in the Country”

"British Chancellor of the Exchequer to Investigate Banking Challenges Faced by Cryptocurrency Companies in the Country"

"British Chancellor of the Exchequer to Investigate Banking Challenges Faced by Cryptocurrency Companies in the Country"

According to a report from “The Block,” UK Chancellor Jeremy Hunt stated that he would investigate claims of licensed cryptocurrency firms facing difficulties in opening corporate accounts in the country. In response to a query from Lisa Cameron, chair of the cross-party parliamentary group on cryptocurrency and digital assets, regarding these challenges, Hunt agreed to meet with Economic Secretary to the Treasury Bim Afolami to discuss the matter.

Hunt responded by saying that he would arrange a meeting with the Treasury to investigate the issue. He also took the opportunity to state, “The UK, particularly London, has become a global center for cryptocurrencies.” Hunt added that in April 2022, during his tenure as Chancellor, Prime Minister Rishi Sunak unveiled plans to transform the UK into a “global cryptocurrency center.” Subsequently, the UK has advanced this goal through legislation, such as new regulations overseeing the Digital Securities Sandbox (DSS) program in the country.

The DSS regulations, outlined in official documents, provide rules for UK financial regulators overseeing tokenized securities sandbox, with terms set to take effect on January 8, 2024, as part of the UK government’s 2023 Financial Services and Markets Act (FSMA). These regulations specify which activities and participants are eligible to engage in the digital securities sandbox. The sandbox allows regulators and businesses to test solutions including distributed ledger technology and tokenized securities.