UK is reportedly planning to issue its own NFT after last year's trading volume rose by 21,000%. This was announced by Economic Secretary to the Treasury John Glen at the Innovate Finance Global Summit in London.
UK's Royal Mint is owned by Her Majesty's Treasury and is responsible for supplying all of the country's coins. Meanwhile, NFTs are tradable digital tokens that represent a virtual item.
In addition to the NFT news, the UK also wants to ensure proper oversight of stablecoins to interact with the crypto industry. Stablecoins are cryptocurrencies that are usually pegged to a fiat currency.
In particular, the UK is considering regulating stablecoins using existing rules in the country regarding electronic payments.
A report from the UK Treasury said the government believes that an amended e-money framework could provide a coherent framework for regulating the issuance of stablecoins, as well as the provision of wallets and custody services. This will allow stablecoins to be recognized as a valid form of payment.
UK also plans to ask the Law Commission to determine the legal status of decentralized autonomous organizations (DAOs) and will examine how to tax decentralized finance (DeFi) loans and "staking."
Some clarity on regulation came after the UK caused quite a stir in March, when the Financial Conduct Authority (FCA) said none of the crypto ATMs currently operating in the UK were legal and should be closed.
Many crypto firms are also still waiting for FCA verdicts on anti-money laundering licensing.