F E A T U R E potentially by assessing each individual ’ s financial ‘ DeFi data fingerprint ’. AI-led automation will also be better able to identify and mitigate money laundering and sanctions evasion .
F E A T U R E potentially by assessing each individual ’ s financial ‘ DeFi data fingerprint ’. AI-led automation will also be better able to identify and mitigate money laundering and sanctions evasion .
New DLT-led data assets call for informed discussion on the operational and regulatory approach . Much of the careful thinking has yet to be done . In particular , enabling a digital gilt will require a more consistent approach from UK regulators in the way they treat cryptoassets , although the UK ’ s Property ( Digital Assets ) Bill may partly address this .
The Government and firms should also embrace advice from digital asset leaders and data analysts who understand the underlying product innovation , technology platforms , DLT ecosystem and how the UK can lead globally .
Opportunity for the UK
Crucially , now is the time to act . Not only are the capital markets already moving towards DeFi , but there is a sizeable first-mover advantage for the UK . Once there are early mainstream use cases of DeFi , the cost and speed advantages will see a strong driver for traditional assets migrating to DeFi , and it will likely spread through the market quickly .
If the UK is not a centre for DeFi , its lead as a global financial centre is likely to be eroded . Failing to develop a digital gilt could see UK financial services stagnate and decline in the next three to five years . With the recent US election , we are also likely to see the SEC rapidly reducing crypto-service regulation , making it even more urgent for the UK to embrace these developments to maintain its current , more fragile lead .
The Government has given the green light to DLT and UK financial services must now focus on building the data foundations , regulatory certainty , and FinTech ecosystem partnerships for DLT financial products . With the right data analytics and input from digital asset leaders , there is every opportunity to seize the benefits ahead and transform economic growth . �
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