The UK government has embraced a proposal to implement tokenization technology, expressing its intention to actively utilize digital assets, supported by a modern regulatory framework and policies aimed at facilitating their integration within the country.

In a new phase of cryptocurrency development, the government has announced the launch of a tokenization initiative, providing funds with the opportunity to leverage blockchain for tokenizing assets, moving away from traditional accounting systems. This underscores the government's commitment to fostering innovation in the financial sector.

Under this initiative, approved on November 24th, the UK allows accredited funds to use tokenization in the investment sphere to enhance efficiency and competitiveness. The initiative was developed by the Technology Working Group of the government's Asset Management Taskforce, with the involvement of the Financial Conduct Authority (FCA), Her Majesty's Treasury, and leading investment firms, including BlackRock.

The report "Tokenization of UK Funds: Implementation Plan" presents a comprehensive roadmap for implementing fund tokenization using distributed ledger technology. According to the report, accredited funds can begin using tokenization for transactions while adhering to existing laws and regulations. The government commits to supporting funds in the integration of tokenization, providing the opportunity to use distributed ledger technology for operations such as sales, redemptions, and maintaining holder registries.

To access tokenization, accredited funds must meet specific criteria, including ownership of underlying assets and adherence to traditional assessment and settlement processes. The project also envisions future stages of tokenization that may require adjustments to legislation or regulatory frameworks.

The UK's ambition to establish itself as a global cryptocurrency hub and adopt blockchain technology remains a key political goal of the current government. The approval of this proposal underscores its determination to encourage innovation and create a robust regulatory framework for cryptocurrencies.

January 4