Regulation of cryptocurrencies in the UK. According to anonymous sources, regulation of the sphere is planned, which can positively affect the development of cryptocurrencies in the UK.
Regulation of cryptocurrencies in the UK is planned in the near future. The UK government is set to announce a new regulatory regime for the cryptocurrency market in the coming weeks, with a focus on stablecoins, CNBC reports, citing several anonymous sources.
Regulation Of Cryptocurrencies In The Uk: What Is Now Known?
UK Treasury Secretary Rishi Sunak is expected to announce a new cryptocurrency regulatory regime in the coming weeks, sources said. CNBC, wishing to remain anonymous as the information has not yet been released to the public. At the same time, the Treasury refused to comment publicly.
The details of the plans are still being finalized, however, it is likely that the regulation will be favorable for the development of the industry. The new measures are expected to help provide legal clarity for the sector. Recall that it is still largely unregulated.
Treasury officials have shown a willingness to understand the complexities of the crypto and stablecoin market, according to sources. Stablecoins are digital assets whose value is directly linked to fiat currencies. For example, to the US dollar, euro or pound sterling. Therefore, they are not volatile like other cryptocurrencies. And they can also be most useful in government calculations.
Stablecoins And Their Impact On The Crypto Market
The Treasury Department is in talks with firms and trade groups, including crypto exchange Gemini, the issuer of its own stablecoin pegged to the US dollar, one of the sources told CNBC.
The announcement states that Chancellor of the Exchequer Rishi Sunak will announce new oversight of digital assets.
Over the past few years, stablecoins have seen an exponential growth in usage in tandem with a growing interest in cryptocurrencies in general. Tether, the world’s largest stablecoin, currently has a total turnover of over $80 billion – up from about $4 billion two years ago.
As a result, this motivates the governments of different states to look closely at the cryptocurrency. Including stablecoins. For example, the Bank of England recently urged politicians to strengthen the global regulatory framework for cryptocurrencies. This is important as regulators are concerned about the possible impact of bitcoin on the financial system. It is also important to control their potential use to evade sanctions.
Read also: Beanstalk Stablecoin Protocol On Ethereum Lost $182 Million Due To Exploit