UK Treasury pushes forward a Stablecoin regulation
Algorithmic stablecoins would be excluded due to their lack of stability; only stablecoins backed by fiat currencies will be considered
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The UK Treasury has announced that it is open to stablecoin regulation for payment purposes. However, algorithmic stablecoins would be excluded due to their lack of stability; only stablecoins backed by fiat currencies will be considered.
This declaration is in accordance with Prince Charles' speech, which highlighted the British government's legislative agenda for the coming year. In the Queen's Speech on Tuesday, May 10, Prince Charles announced that the government would introduce new legislation to strengthen the UK's financial services industry and guarantee that it acts in the interest of all people and communities. Two of the proposed bills specifically mentioned cryptocurrency.
John Glen, the UK's Economic Secretary to the Treasury, had indicated in April 2022 that the country would begin regulating stablecoins. He said, "I can confirm that we will be legislating to bring certain stablecoins into our payments framework… creating the conditions for stablecoin issuers and service providers to operate and grow in the UK."
In April, the British government also published a detailed strategy to turn the country into a global crypto hub and a friendly atmosphere for crypto. The UK government is now looking to alter existing regulations governing electronic money to include stablecoins, bringing stablecoins under the Financial Conduct Authority's scrutiny.
