UK is preparing new crypto regulations for stablecoins: Part 2

     The BoE and the FCA have put forward a stablecoin regulatory proposal covering payment systems and are seeking public feedback.

Need for regulation

     The financial stability of the UK may be at risk if cryptocurrency payment methods are widely used for retail transactions. By regulating stablecoins and payment systems, the FCA (Financial Conduct Authority) is working for equitable use across the industry, while the BoE (Bank of England) is working to mitigate the risks.

Regulators are promoting GBP

     Most stablecoin developers focus on dollar-pegged stablecoins and maintain a US dollar reserve for their projects. The new UK regulations focus on GBP-pegged stablecoins for use in the UK. If stablecoin creators issue GBP-based stablecoins, they will also create reserves of GBP, which will boost GBP too.

Britain to become a crypto hub

     On the one hand, crypto is an ideology of economic freedom; on the other hand, there is a need for regulations to prevent its misuse or hacking. People often have to adopt a middle path. Taking advantage of this, Rishi Sanuk wants to make Britain a crypto hub, but only time will tell how successful he will be.