Published: 28.03.2022
Article reading time:
2 minutes.
The UK Treasury intends to unveil its plans to regulate the cryptocurrency industry, in particular, to oversee stablecoins, in the coming weeks.
According to CNBC, citing its own sources, the UK Treasury Secretary Rishi Sunak will announce the government’s plans to regulate cryptocurrencies. The details of the plan are still being finalized, but it is already known that the regulatory regime will be heavily focused on the rules for oversight of stablecoins.
The UK Treasury has already discussed the upcoming regulatory package with several crypto companies, including Gemini, the issuer of the U.S. dollar-backed Gemini Dollar (GUSD) stablecoin.
The regulatory framework for crypto assets being developed in the EU is currently undergoing a complex legislative approval process and places a lot of emphasis on the oversight of stablecoins. In parallel, the US Congress is developing regulations for stablecoins due to the potential risks that these private cryptocurrencies may pose to financial stability.
Recently, UK regulators have raised concerns that the adoption of cryptocurrencies carries financial risks. Against the backdrop of the protracted development of international standards for the circulation of cryptocurrencies, the Central Bank requested that it be granted new powers to protect the country’s financial system.
In January, Her Majesty’s Treasury proposed removing the terms “blockchain” and “DLT” from the cryptocurrency law, and writing a set of separate rules for regulating DeFi in legislation. According to the Ministry of Finance, over time, the terminology may change, which means that now is the time to apply the terms “focused on the future of the crypto industry.”
Last year, the Bank of England called for global regulation of cryptocurrencies and said it was unable to independently collect data on the crypto activities of companies.
Source: Bits
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