A UK bill that the government has recently passed has underlined the importance of blockchain and DLT for digitization.
Crypto and its underlying technology have been officially termed as helpful for a new UK law, by the government. The UK government released a press release and officially endorsed blockchain and DLT for the rule. Lawmakers recently passed the new UK law- the Electronic Trade Documents Act 2023.
Stakeholders would have to digitize trade documents, according to the law. It is the reason why the government has mentioned digital ledger technology (DLT) and blockchain. Authorities could enforce the law this year. According to the regulation, trade documents will also be distributed and stored digitally for all purposes.
Authorities are yet to finalize the usage of blockchain for the law. It will first be tested and then approved by the government.
“Electronic trade documents also increase security and compliance by making it easier to trace records – for instance, through the use of blockchain and distributed ledger technology,” said the government’s press release.
The crypto industry has received the law positively. It expects electronic trade documents to increase efficiency. Blockchain and DLT could help in the process by amplifying security and workflow. It could also help reduce costs while serving in compliance matters as well.
In other news, the UK government has expressed its support for crypto. It had denied comparing it with gambling after a Treasury report had recommended so.