The UK Government just stated it aims to make UK the hub of crypto asset technology. Includes plans for DeFi adoption as well! Bullish

The UK Government just stated they aim to make UK a hub for crypto asset. While it does seem like its more oriented towards stablecoin regulation, there are some interesting takeaways for defi too.

First, they aim to bring stablecoins under regulation, so it can be used as a form of payment! This is massive for the entire crypto space! Imagine if you can spend USDC and possibly GBP stables straight from your wallet on e-commerce websites, travels, and even instore shopping? It could be a game changer for crypto adoption.

Stablecoins to be brought within regulation paving their way for use in the UK as a recognised form of payment.

On DeFi:

The UK government will explore ways of enhancing the competitiveness of the UK tax system to encourage further development of the cryptoasset market in the UK. It will review how DeFi loans – where holders of cryptoassets lend them out for a return – are treated for tax purposes

Treating defi loans has been tricky, with some countries like Sweden even considering defi loans as a capital gains tax event. (For example, if you borrow stables from crypto, it is treated as if you sold the crypto. This is by far the worst treatment). Friendly regulations here could grow the crypto market in the country, as users can take loans from defi protocols without it being considered as a tax event. This in turn could spur the economy, as the money borrowed from defi can be used in regular economic activity.

Chancellor of the Exchequer, Rishi Sunak said: It’s my ambition to make the UK a global hub for cryptoasset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country.

Overall, the move seem positive and the full proposal is much awaited!

https://www.gov.uk/government/news/government-sets-out-plan-to-make-uk-a-global-cryptoasset-technology-hub