Thirdly, we are making the UK the location of choice for fintechs to start up, scale and list, and we want the wider financial services sector to embrace innovation too. The FCA and the Prudential Regulation Authority will launch a scale-up unit to ensure that fast-growing businesses have the support they need to grow. The regulators will also introduce a new streamlined authorisation regime that will enable innovative firms to start operating while they await full approval. We are modernising and future-proofing the regulatory framework for payments and e-money, including stablecoin, and we are establishing a new model to deliver next-generation retail payments infrastructure.

“We don’t think that’s appropriate for our market,” Reynolds said regarding a national Bitcoin reserve. “We understand that’s what the U.S. is going for, but that’s not the plan for us.”

Reynolds noted that the UK has established a “senior official level working group” with the U.S. to discuss cooperation on Bitcoin and crypto, with a regulatory forum scheduled for June. This follows recent meetings between the UK’s Chancellor of the Exchequer and U.S. Treasury Secretary Scott Bessent.

Reynolds acknowledged the challenges in regulating certain aspects of Bitcoin and crypto, particularly Bitcoin’s decentralised nature. “There’s only so much the government can do in that regard,” she said. “We understand that some of this stuff is a little bit amorphous, and the decentralised stuff is particularly difficult.”

The clause makes changes to ensure that the Treasury has the power to make regulations to implement the cryptoasset reporting framework, which is also known as the CARF. The CARF was developed at the OECD, and the previous Government supported its development and committed to the UK’s implementing it, so I hope the Conservatives will support the clause.

The CARF will require cryptoasset service providers to collect, check and report information that identifies their non-UK-resident customers and their non-UK-resident customers’ cryptoasset transactions undertaken from 2026. HMRC will then receive and share relevant data with participating jurisdictions for tax purposes from 2027. Other participating jurisdictions will share their data with HMRC where it relates to UK resident customers of non-UK cryptoasset service providers. The increased tax information that the CARF will bring to HMRC is expected to generate additional revenue of £315 million across 2026-2029. The Government intend to make the regulations in 2025 so that the CARF applies to UK crypto businesses in the UK from 1 January 2026.

The changes made by the clause will amend existing legislation so that the CARF is added to the list of international arrangements for exchanging information. This will give the Treasury the power to make the CARF regulations to implement the CARF regime so that it applies to UK cryptoasset service providers from 1 January 2026. The clause is essential so that the Government can implement the CARF.

If i had much money to invest, my preference would be to invest in things that have underlying value