On Monday, the UK Treasury revealed definitive proposals dealing with the regulation of stablecoins and crypto. Authorities in the country want to implement regulations in different stages, starting with the fiat-supported stablecoins’ oversight in the case of payment-related purposes. The next phase will deal with the broader world of crypto assets. The company outlined the respective points in a couple of policy documents.
Treasury Department of the UK Reveals Proposals for Stablecoin and Crypto Governance
The respective suggestions are witnessed following a consultation issued in February. It dealt with the next financial services-related regulatory structure related to crypto assets within the jurisdiction of the United Kingdom. Several stakeholders and entities actively took part in the consultation procedure. They provided insights to improve the proposed approach of the government.
The Treasury’s economic secretary, Andrew Griffith, commented on this development. As per Griffith, the majority of the aspects of the proposals witnessed appreciation from the respondents. The official added that the authority additionally made some modifications to particular features of the future agenda. The Treasury’s objective is to regulate the stablecoins backed by fiat currency in a couple of zones.
The Proposed Regulations Will Permit the Bank of England to Oversee Selected Stablecoins
The respective zones deal with stablecoins’ utilization in payment mechanisms as well as their storage and issuance within the jurisdiction. The proposed regulations will bring selected fiat-supported stablecoins to the oversight conducted by the Bank of England. In addition to this, the Payment Systems Regulator and the Financial Conduct Authority will also be able to oversee them.
In collaboration with each other, they will attempt to minimize the impact on the clients along with addressing the conduct. Moreover, the financial stability as well as the other hazards linked to such stablecoins will also be taken into consideration. Particularly, this will have great attention in the case of transfers.
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