Like the EU’s framework for crypto assets that is currently making its way through the legislative process, the U.K.’s regulatory efforts may also focus heavily on stablecoins.
The U.K. government is set to reveal its plans for regulating the crypto industry in the coming weeks, according to CNBC.
- Although details are still being finalized, the regulatory regime will focus heavily on stablecoins which are cryptocurrencies fixed to the value of other assets, CNBC reported Sunday citing unnamed sources.
- The U.K. Treasury Department has discussed the upcoming regulatory package with multiple crypto firms including Gemini, the issuer of stablecoin Gemini dollar (GUSD), which is pegged to the U.S. dollar, according to the report.
- The European Union’s landmark regulatory framework for crypto assets, currently moving through the bloc’s complex legislative process, also has a heavy emphasis on oversight into stablecoins.
- The U.S. Congress is also working on specific regulations for stablecoins over potential risks these private cryptocurrencies may pose to financial stability.
- On Thursday, U.K. regulators published a report voicing concerns about how crypto adoption poses financial risks.
- Rishi Sunak, Britain’s finance minister, is set to announce the U.K. government’s regulatory plans for crypto in the coming weeks, according to the report.