News

UK Regulators Confirmed To Regulate Stablecoins Following The Fall of LUNA & UST

UK Regulators Confirmed To Regulate Stablecoins

Despite last week’s crypto market crash, the British Treasury Department is pressing forward with plans to regulate payment stablecoins.

The confirmation came after Terra’s collapse, which saw the algorithmic stablecoin UST lose its peg to the US dollar and Terra’s token LUNA plummet to almost zero.

A HM Treasury spokesman said: “Legislation to regulate stablecoins, where used as a means of payment, will be part of the Financial Services and Markets Bill which was announced in the Queen’s Speech.”

“This will create the conditions for issuers and service providers to operate and grow in the UK, whilst ensuring financial stability and high regulatory standards so that these new technologies can be used reliably and safely,” the spokesperson added.

Last week, Prince Charles presented the Queen’s Speech, which outlined the British government’s legislative priorities for the coming parliamentary year. Two of the proposed measures directly reference cryptocurrency.

In April, the British government published a comprehensive strategy to turn the country into a worldwide crypto powerhouse and “a hospitable place for crypto.”  Establishing a dynamic regulatory framework for crypto, regulating stablecoins, and collaborating with Royal Mint to produce an NFT by summer are all part of the plan.

The plan would “ensure the UK financial services industry is always at the forefront of technology and innovation,” according to Rishi Sunak, the British chancellor of the exchequer.

The Treasury, on the other hand, says algorithmic stablecoins will not be included in the law since they do not ensure stability.

“The government has been clear that certain stablecoins are not suitable for payment purposes as they share characteristics with unbacked crypto assets. We will continue to monitor the wider crypto asset market and stand ready to take further regulatory action if required,” the spokesperson said.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Hazel

CoinCu News

Victor

Recent Posts

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

54 minutes ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

2 hours ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

3 hours ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

4 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

4 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

5 hours ago

This website uses cookies.