Britain announces plans to mint its own NFT as it looks to ‘lead the way’ in crypto

The U.K. government plans to mint a non-fungible token as part of a push to become a world leader in the space.

The Royal Mint was asked by the Finance Minister to create and issue the NFT by the summer.

The initiative is part of a broader effort by the government. The minister said the U.K. will bring digital assets under more regulatory scrutiny.

• Bring certain stablecoins into the U.K. payments framework so that stablecoin issuers and service providers can “operate and grow in the U.K.”
• Consult on a “world-leading regime” for regulating trade in other cryptocurrencies, including bitcoin.
• Ask the Law Commission to consider the legal status of blockchain-based communities known as decentralized autonomous organizations, or DAOs.
• Examine the tax treatment of decentralized finance (DeFi) loans and “staking,” which gives crypto users the ability to earn interest on their savings.
• Establish a Cryptoasset Engagement Group that will be chaired by ministers and host members from U.K. regulators and crypto businesses.
• Explore the application of blockchain technology in issuing debt instruments.

Glen said that we shouldn't be thinking of regulation as a static thing.

CNBC reported on the government's plans to create a regulatory framework for stable coins.

Stablecoins, cryptocurrencies that derive their value from the U.S dollar, are a fast-growing but controversial phenomena.

The world's biggest stable coin has a circulating supply of more than 80 billion. There is a lack of transparency around the reserves that back the token.

Glen said the government was widening its gaze to look at other aspects of the technology, including the Web3 movement that proposes a more distributed version of the internet.

No one knows how Web3 is going to look.

We want this country to be there, leading from the front, looking for the greatest economic opportunities.

As policymakers around the world begin taking a closer look at the $2 trillion market, industry insiders have been calling for clarity about the U.K.'s position.

President Joe Biden signed an executive order last month urging government-wide coordination when it comes to regulating digital currency. The move was positive for the sector.

European Union lawmakers recently voted against measures that would have put the future of cryptocurrencies at risk. New rules were passed cracking down on anonymous transfers.

British regulators have a tough stance on digital assets.

The Financial Conduct Authority is worried that too many financial crime red flags are going undetected, so it has rejected a lot of the applications from the industry.

The deadline for businesses on a temporary register to get full authorization was extended last week. The former U.K. finance minister is an advisor.

B2C2 and Wirex were forced to wind down their U.K. operations after failing to make it onto the final register. Only 33 firms have been approved.