Stablecoins will be regulated and an NFT will be issued to promote the UK as a crypto-friendly IT centre.
With the announcement of government monitoring of stablecoins and a pledge to deliberate on broader regulation of crypto asset activities, the United Kingdom signals engagement with a sector with which it has fought in the wake of digital assets’ mainstreaming.
On Monday, a new initiative was unveiled in an attempt to allay some of these fears and promote Broughton as a crypto-friendly area.
In a speech on Monday, economic secretary to the Treasury John Glen hailed cryptography’s underlying technology, distributed ledger technology, and blockchain as game-changing.
Glen also declared that the United Kingdom is open to crypto commerce. A non-fungible token (NFT) was requested by Chancellor Rishi Sunak to be distributed this summer.
Stablecoins, according to a Treasury news release, might be a useful payment system that gives consumers additional options.
In the UK, stablecoins will be subject to regulation
Following an investigation into the influence of different crypto assets on the banking system, the UK government said that stablecoins may offer a more efficient form of payment and broaden customer choice.
Stablecoins will be better managed in the UK if e-money regulation is updated. To combat money laundering, the Financial Conduct Authority (FCA) mandates that all pre-paid payment card issuers register with the agency.
Treasury authorities have suggested that new financial sector infrastructure sandboxes be built in order to encourage the expansion of the crypto-asset market.
Until the Financial Conduct Authority (FCA) makes a decision on anti-money laundering licence issues, the UK’s cryptocurrency legislation is mired in confusion.
Several companies (including B2C2, Blockchain.com, and Wirex) have chosen to apply for licences in other countries because of FCA licencing requirements.
Experts in the crypto business fear a talent flight without a clearer regulatory framework from Britain’s main financial agencies, such as the Bank of England, Treasury, and Financial Conduct Authority.
Stablecoins, a sort of crypto asset that is often tethered to a fiat currency such as the dollar, would be brought within the jurisdiction of the authorities by amending current regulations for electronic payments.
When the value of one stablecoin is linked to the value of another, it is referred to as a “stable fiat currency.” There is a possibility that stablecoins might replace Bitcoin in the future.