- UK’s crypto industry welcomed new stablecoin rules pending guidance from financial watchdogs.
- A proposed bill could clarify new powers vested in regulators over payments-focused crypto assets, stablecoins.
- Crypto regulation is a part of the UK government's post-Brexit economic strategy; therefore, the community is awaiting interpretation of new rules.
UK’s crypto industry gave regulators new powers over stablecoins, payments-focused crypto assets. It remains unclear how financial watchdogs will interpret rules; regulation remains key to the UK’s post-Brexit economic strategy.
Crypto.com granted license by UK’s Financial Conduct Authority
Crypto.com, a Singapore-based cryptocurrency exchange registered with Britain’s Financial Conduct Authority. The regulator granted permission to the exchange to provide services and goods relating to digital assets to consumers in the United Kingdom in accordance with laws against money laundering and "terrorist" financing.
This is considered a positive step in the direction of crypto regulation in the UK. The UK is one of the leading economies that proposed legislation targeting stablecoins after Terra’s UST lost its peg and collapsed, triggering a bloodbath in the crypto ecosystem. The decline of a $40 billion enterprise was alarming for regulators worldwide. Cryptocurrency businesses have welcomed the new rules and await guidance from regulators and financial watchdogs.
James Alleyne, legal counsel at the London-based law firm Kingsley Napley, said,
We will have to wait to see what new rules are introduced as a consequence of the bill to fully understand the new powers and approaches of the various regulators.
The proposed stablecoin rules map the UK’s post-Brexit economic strategy, the key to crypto market participants, institutions and platforms. The plan to extend financial regulations to cover payments-focused cryptocurrencies is intended to maintain a peg with fiat currencies, like the USD. The new rules would cover USDT, USDC, TUSD and other stablecoins that maintain a peg with fiat.
Lisa Cameron, member of Parliament and chairwoman of the cross-party group for crypto, was quoted as,
I see this as a key piece of legislation for financial services, which I hope can allow us to make the most of the opportunities of Brexit and to establish an approach to crypto regulation that is right for the U.K.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.