UK open for crypto business

London: Britain has unveiled plans to regulate some cryptocurrencies as part of a broader plan to become a global hub for digital payments, coming as authorities in the US and Europe are racing to draw up rules for crypto. Cryptocurrencies have exploded in popularity, leaving officials worldwide scrambling to figure out how to regulate them amid fears they could threaten financial stability and hurt consumers.

"The UK is open for business — open for crypto businesses," John Glen, economic secretary to the Treasury, said in a speech Monday. Treasury chief Rishi Sunak also has asked the Royal Mint to create a digital collectible known as an NFT as an "emblem of the forward-looking approach the U.K. is determined to take," Glen said.

Crypto proponents say the technology will make payments faster, easier and more transparent, while skeptics worry it could be used for illegal activity like money laundering and contribute to carbon emissions because of the heavy computing power needed to process transactions. Last month, the United States stepped up government oversight of cryptocurrency while European Union lawmakers agreed on draft rules for cryptoassets.

Glen said the government plans to update laws on payments to include a typo of cryptocurrency called stablecoins to encourage issuers and service providers to operate and grow in the U.K. Stablecoins are usually tied to the dollar or a commodity such as gold, making them a lot less volatile than normal cryptocurrencies like bitcoin, which can swing wildly in value.