UK Crypto Regulation Plans Will Be Announced in Coming Weeks

The UK Treasury intends to unveil its plans to regulate the cryptocurrency industry, in particular, to oversee stablecoins, in the coming weeks.

The crypto-asset market is trying to get rid of the long-term falling trend. In the decline that started in the second half of November, cryptocurrencies experienced serious losses. Bitcoin fell to the level of $ 32,000 in this process.

However, in the new week, BTC managed to catch the $47,000 level.

UK set to disclose plans for regulating crypto

The news that could affect the markets deeply at the weekend came from England. According to the news from the country, which is home to many important crypto institutions and has a large investor base, it is only a matter of time before the regulations come.

British Finance Minister Rishi Sunak will announce the country's cryptocurrency regulations in the coming weeks, CNBC reports, citing 4 sources in the region. According to the report, the government has focused its efforts on stablecoins.

Multibank Review
Visit Site
4.8/5 Review
Visit Site
4.8/5 Review
Visit Site

Sources reported that the ministry is also holding talks with a number of crypto asset companies regarding the issue. According to the news, one of the companies contacted is Gemini, the crypto money exchange owned by the Winklevoss brothers.

Read also: March 31 Deadline for Crypto Firms to Register with the UK FCA

It was learned that the ministry refused to comment on questions asked about CNBC's report. The sources, on the other hand, stated that they think the regulations will be positive for the sector.

Regulators in the UK are known to closely monitor the crypto asset market. The country managed to sit on the top of the agenda with the sanctions it imposed on Binance, the world's largest cryptocurrency exchange, last year.

The Bank of England, on the other hand, called on policy makers during the week to expand regulatory frameworks to limit the risks crypto poses to financial stability.

In addition, the country's other regulator, the Financial Conduct Authority, recently said that "many" crypto businesses do not meet the required anti-money laundering standards. It is known that only 33 companies in the country currently meet these conditions.

It is known that 80% of the companies evaluated by the regulatory agency have withdrawn their applications or been rejected. It is stated that a number of companies, including Revolut, and Copper, may have to cease operations if they are not registered by March 31.

Stablecoins discussions continue

In line with the growing interest in cryptocurrencies, stablecoins have seen significant growth in usage over the past few years. Tether, the currently widespread stablecoin in the world, has increased its market value from $ 4 billion to $80 billion in two years. However, the rumors that stablecoins threaten fiat currencies such as the US Dollar have been seriously discussed in recent months. In this process, it is known that states are working on regulations to take precautions against these assets.

Recently, there has been an important development in this regard in the US. President Joe Biden signed an executive order that will reveal the government's crypto asset strategy at the beginning of March. With this executive order, the Department of Justice, the Department of the Treasury, and many regulatory agencies were authorized to investigate cryptoassets.

Think we missed something? Let us know in the comment section below.

Leave a Reply

Your email address will not be published. Required fields are marked *