Five major associations have formed an industry alliance to guide and regulate the growth and development of the crypto sector in the United Kingdom.

UK Forms Digital Currency Forum

According to a press release, the association, dubbed the UK Forum for Digital Currencies (UK FDC), will help develop fair policies and regulations for digital currencies in the country.

Members of the UK FDC include the City of London Corporation, Digital Pound Foundation, The Payments Association, TheCityUK and UK Finance, each having specific roles to play in the alliance.

The UK government believes that the growth and rapid adoption of cryptocurrencies are gradually changing how society sees and uses money.

“While there are risks, the UK FDC recognises this growing interest and the adoption of new forms of digital money across the globe and how it will open many opportunities for the UK to remain competitive in fintech while leading financial innovation with the right regulatory framework,” the press release reads.

The UK FDC will act as a platform for discussing the country’s response to crypto developments, including the regulatory approach to stablecoins and the potential launch of a central bank digital currency (CBDC).

Becoming a Crypto Hub

The UK government aims to turn the country into a crypto hub. The group will support the plan and facilitate cooperation between the UK’s existing financial services and crypto industries. The alliance will lower barriers between both sectors and enhance mutual understanding.

Furthermore, the forum will push for a balanced approach to issuing a regulatory framework that promotes innovation, diversity, and competitiveness between publicly and privately issued digital currencies in the UK.

“The group will aim to mitigate the actual risks and alleviate the perceived risks through education and the ability to advocate for appropriate policy and proportionate regulation…This includes the development of common terminology which embraces existing definitions used in the sector into a single lexicon,” the release adds.

With the UK FDC, the government hopes to attract international investment into the country while creating a bridge between incumbent and emerging players within the sector.

~ By William A. Frederick ~