In what is being perceived as a step in the right direction, Chancellor Philip Hammond has announced the creation of a special cryptocurrency task force that will look to regulate and foster crypto innovation within the UK.

As part of his speech at the second annual International Fintech Conference in London, Hammond said that the new task force will comprise of members from the Treasury, the Bank of England, and the Financial Conduct Authority.

The goal of this new regulatory unit will be to assist businesses of varying scales to adopt blockchain services as well as implement the use of different alt-assets such as Bitcoin, Ethereum for daily transaction purposes. By introducing a new structural framework, the task force claims that they will help safeguard firms from the ‘potential risks’ of cryptocurrencies.

“I am committed to helping the sector grow and flourish, and our ambitious sector strategy sets out how we will ensure the UK remains at the cutting edge of the digital revolution. A new task force will help the UK to manage the risks around crypto-assets, as well as harnessing the potential benefits of the underlying technology.”

Other key points to carry home from Hammond’s speech

In addition to the creation of a crypto task force, Hammond also announced some other measures that the government was looking to implement in the coming future.

1. Adoption of new “robo regulations” that will allow digital startups to significantly cut down on overhead costs and legal fees.
2. Formation of a “fintech bridge” that will foster a healthier financial relationship between the UK and Australia. As part of this proposed agreement, it will become easier for British service providers to gain a foothold in the Australian Fintech market, thus opening new channels for e-commerce and trade between the two global powerhouses.

While such changes are being welcomed by the crypto community at large, it remains to be seen if the British government now actively works towards creating a healthy economic environment that promotes cryptocurrencies, rather than impose more restrictions.

With British Prime Minister Theresa May calling for “stronger regulations” on all virtual-assets at the start of 2018, this sudden change of heart seems a bit strange and a little out of the blue.

However, only time will tell how this scenario eventually plays out, but for the time being, it looks like things are looking up for the European crypto market.