The UK to Add Regulation to Stablecoins Before August

The UK Treasury has issued plans to introduce legislation on a regulatory system for stablecoins before August.

Amid chaos within its government, the UK Treasury has stated that it will begin introducing legislation on a regulatory system for stablecoins before August.

Such news was issued by the Bank of England’s deputy governor Jon Cuncliffe yesterday, wherein he stated that the decision was made after consultation sessions took place with other regulatory bodies such as the Bank of England, the Payment Systems Regulator, and the Financial Conduct Authority. 

As per the words of Cuncliffe, resignations within the government from the likes of Boris Johnson, as well as crypto-advocates Rishi Sunak and Jon Glen, are said to delay such plans partially, however once rolled out, it will adopt measures from the 2017 Payment Service RegulationsFinancial Services Act to carry out its intended regulatory purpose. 

Cuncliffe’s speech, which was made at the Qatar Centre for Global Banking and Finance’s annual conference, also alluded how to globalise such measures, wherein issues such as ‘which assets should back these stablecoins,’ ‘what should the redemption or claim be,’ and ‘how do you ensure if a stablecoin or money that is being used at a systemic level is safe or not’ were raised.

 

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