AFME Advocates for UK's Blockchain Market Leadership
The Association for Financial Markets in Europe (AFME) has issued a call to the UK government, emphasizing the need for immediate and coordinated action in blockchain-based markets. They aim to establish the UK as a leader in distributed ledger technology. The involved parties include the UK government, AFME, and related financial institutions. Actions entail policy framework development and public sector deployment to capitalize on blockchain opportunities. The UK is poised to utilize existing resources to catalyze this shift.
Expected Shift in UK’s Blockchain Regulatory Landscape
AFME's appeal is anticipated to influence regulatory actions and shape the focus of UK digital-asset startups. Institutions might pivot towards regulatory compliance and B2B infrastructure, reflecting a shift from retail-driven market dynamics. Financial outcomes include a potential increase in B2B blockchain initiatives. Historical market shifts suggest enhanced efficiency in capital markets. Regulatory frameworks may see faster implementation, aligning with global trends for institutional solutions.
The UK has all the ingredients to lead the next generation of capital markets globally. DLT offers the opportunity to make markets more efficient, innovative, and accessible, but to fully realise this potential, the UK needs to deliver on an ambitious vision, implement timely policy frameworks, and pursue proactive public sector deployment. Given the pace of policy changes and innovation internationally, the time to act is now.
— Coco Chen, Associate Director of Technology and Operations, AFME.
UK’s Approach Compared to European DLT Pilot Regime
Comparing to the European DLT Pilot Regime, the UK's initiative is distinct in its focus on robust regulatory practices. Previous cycles concentrated on retail; the current focus is on institutional DLT integration. Experts highlight the strategic advantage in embracing institutional blockchain technologies. Data suggests that regulatory-driven innovation can lead to sustainable growth, positioning the UK at the forefront of the digital transformation in capital markets.