The Finance Ministry of the United Kingdom will declare a unique regulatory agenda for crypto during the impending weeks, centred around stablecoins. As per the people acquainted with the situation, the latest regulations will favour the crypto industry, offering some transparency to deal with the mistiness of the present rules.
As per the reports, officials from Treasury have indicated enthusiasm to know about the crypto market by having guidelines from crypto trade groups and companies, such as Gemini exchange. Gemini releases its stablecoin, which depends on the USD for its value. The utilization of stablecoin has a correspondence with the broader crypto market’s trajectory, with Tether – the biggest stablecoin across the globe – having an increase of more than $80 billion in its supply as compared to $75 billion a couple of years back.
Notwithstanding the fame of stablecoins, some concerns have been raised by the regulators that the coins may not be backed by fiat currency due to the insufficiency of the reserves thereof. Another concern is related to the utilization of the respective resources on the behalf of the criminals in money laundering as well as to participating in the rest of the criminal operations. The Bank of England instructed the regulators to decrease the hazards posed by crypto to the financial stability of the country.
The UK under the Biden administration
The Bank’s Deputy Governor issued letters to the CEOs of several banks, referring to an elevated interest of the investment companies and banks in entering diverse crypto markets. This is witnessed following the president of the United States directed different Federal Agencies of the country to collaborate in their endeavours regarding crypto regulations, ordering the Treasury departments to mutually undertake research projects targeting diverse subjects.
The respective topics also take account of the issuance of a state-supported stablecoin. Jake Sullivan (the National Security Adviser) as well as Brian Deese (who cautioned about the National Economic Council of the White House), stated that the latest executive directive points toward the policy priorities of the administration, both in terms of crypto as well as any additional things regarding the CBDC (Central Bank Digital Currency of the United States).
Registration deadline of the FCA approaches
Some crypto firms across the United Kingdom could be compelled to stop activities if they remain unsuccessful in getting registered under the FCA till 31st March of this year. The agency intends to ensure that its policy standards to counter money laundering are followed by the companies.
James Thompson