March 29, 2022
By Sharan Kaur Phillora
The U.K. government plans to announce a new regulatory regime for the cryptocurrency market in the coming weeks, with a focus on stablecoins according to a report by CNBC.
Here’s what we know:
British Finance Minister Rishi Sunak is expected to make an announcement in the coming weeks about a new regulatory regime for crypto, the sources told CNBC, preferring to remain anonymous as the information hasn’t yet been made public.
Although details are still being finalized, the regulatory regime will focus heavily on stablecoins, which are cryptocurrencies fixed to the value of other assets
Stablecoins have raised concerns among regulators, specifically around misrepresentation of the assets in the reserves that back these coins. That could cause problems if investors were to sell their holdings en masse, so they have become a focal point of regulatory discussion.
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.
Chancellor of the Exchequer Rishi Sunak is expected to make the announcement about the new oversight of digital assets.
On Thursday, U.K. regulators published a report voicing concerns about how crypto adoption poses financial risks. BoE deputy governor Sam Woods, wrote that discussions are ongoing internationally on the treatment of stablecoins and his office will continue to consult firms and trade groups throughout the process.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.