UK Government Commits to Expanding Digital Asset Sector in “National Budget Plan”

In the UK's “National Budget Plan” Statement, Chancellor of the Exchequer Jeremy Hunt announced a series of measures, including a decisive initiative to expand the digital assets sector to promote economic development. One of the notable points is the plan to launch a “digital finance testbed” (DSS) to facilitate the adoption of digital assets in financial markets. According to the budget announcement, the UK government will pass legislation to implement the DSS, a statutory instrument that will be introduced to the Edinburgh Reform notice in 2023, expected to become operational in the first quarter of 2024. Zodia Markets General Counsel Dina White praised the progress of the DSS initiative, seeing it as an important step in applying new technology to traditional financial assets. The digital finance testbed will enable companies to use digital asset technology to establish and operate key financial market infrastructure, including central securities depositories and transaction location. This will open the door for a broader range of asset classes to interact with financial market activities, from ‘digitally native’ securities to digital representations of traditional instruments. DSS not only supports companies in the early stages of digital product development, but also creates opportunities to trial new products and services, and helps enhance the UK's reputation as a global powerhouse. home for innovation. Head of Public Relations Eva Gustavsson described the Chancellor of the Exchequer's plan as "an important commitment" and hoped to have more information about DSS as soon as possible. Through the UK Financial Conduct Authority (FCA) “Digital Finance Testbed”, DSS will provide the opportunity to establish financial market infrastructure using digital asset technology, with The regulations are temporarily amended. This will be done through a statutory instrument, bringing the DSS into force without the need for a new Act of Parliament. Against the backdrop of the challenges and opportunities of digitalisation, the DSS initiative is seen as a key step in putting the UK at the forefront of innovation and technology adoption in the financial sector.