UK Regulates Stablecoins as Treasury Introduces New Finance Legislation

UK Regulates Stablecoins as Treasury Introduces New Finance Legislation

Financial services and market legislation is primarily concerned with a number of issues, including giving governments more control over regulators.

Many countries are reassessing regulations as a result of changes in the cryptocurrency industry and the growing demand for it.

Some countries, such as India, are completely ignorant of the financial development potential due to a complete lack of information, while countries such as the United Kingdom change their minds and are more open to implementing new technologies.

UK Treasury announces new legislation

The new Treasurer and Treasurer Nadhim Zahawi has introduced a new bill to Congress called the “Financial Services and Markets Act” that specifically modifies the way the country currently conducts bitcoin business.

The Treasury’s emphasis on stablecoins and the operation of national regulators stand out among the numerous recommendations.

First, the law aims to control the number of stablecoins currently accepted as payment methods, including Tether (USDT) and USD Coin (USDC).

The bill gives the Bank of England the power to restrict how the Financial Conduct Authority (FCA) regulates payment systems that use digital payment assets if the regulatory action adversely affects the national economy or creates financial problems. do. Instability.

The Prime Minister referred to the day as a landmark day for UK financial services, and by introducing the legislation, “we are removing hundreds of EU regulations and leveraging the benefits of Brexit to ensure that the financial sector can do well in the UK. making it happen,” he said. British and business interests”

UK achieves goals

Former Treasury Secretary Rishi Sunak announced in April that he would make the UK a hub for crypto technology. The new law will allow Zahawi to continue that goal.

Sunak said the Ministry of Finance will draft legislation to include stablecoins within the legal framework, and the current prime minister plans to achieve this through financial services and markets legislation.

Given that the bill is in its second reading phase in the House of Representatives, it could go through several stages and undergo some revisions before receiving royal approval.