Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to ensure that the UK becomes an attractive jurisdiction for digital assets companies looking to build and scale up their business.

The government believes that having robust and effective regulation will boost innovation - by giving people and businesses the confidence they need to use new technologies safely.

In April 2022, the government set out a number of reforms which will see the regulation and aspects of tax treatment of cryptoassets evolve. This included a commitment to consult on further regulation for cryptoassets. A consultation on the future financial services regulatory regime for cryptoasset activities was published here: https://www.gov.uk/government/consultations/future-financial-services-regulatory-regime-for-cryptoassets on Wednesday 1 February. The proposed measures position the UK as a safe jurisdiction for cryptoasset activity, fostering innovation and providing clarity for firms and consumers.

The consultation covers a number of issues, including that of geographic scope. The government proposes to capture cryptoasset activities provided in or to the United Kingdom, which would capture activities provided by UK firms to persons based in the UK or overseas, as well as those provided by overseas firms to UK persons. Whilst this is intended to be the standard approach, the government recognises that there may be nuances in the application of this for specific activities.

Given the global nature of cryptoassets, the government also remains committed to working closely with international partners, and through global fora, on our response to developments in the cryptoasset sector.