John Glen, the UK's monetary companies minister, has mentioned that stablecoins would be the major focus of the federal government’s crypto regulat
John Glen, the UK’s monetary companies minister, has mentioned that stablecoins would be the major focus of the federal government’s crypto regulatory exercise.
Glen made delivered his feedback whereas addressing a convention organized by Metropolis & Monetary World on Tuesday, Reuters reported.
For Glen, the U.Ok.’s determination to prioritize stablecoins over regulating the broader monetary market is because of fears of monopolies rising out there primarily based on the restricted variety of members providing fiat-pegged cryptocurrency cost companies.
“There’s the potential for some corporations to swiftly obtain dominance and crowd out different gamers, as a result of their means to scale and plug into present on-line companies,” Glen remarked.
Certainly, the minister’s argument echoes sentiments espoused by a number of monetary regulators towards the Diem stablecoin venture. Initially dubbed Libra, regulatory authorities in several international locations pointed to Fb’s international presence as a big danger issue to sovereign financial insurance policies related to the deliberate digital foreign money venture.
Diem for its half has tried to smoothen these regulatory wrinkles by making wholesale adjustments to the venture. Nonetheless, Diem is but to obtain the required regulatory approval to start launching its stablecoin.
Glen’s feedback are the most recent indication of the U.Ok. authorities’s concentrate on stablecoins as a part of efforts to advertise novel fintech improvements amid the nation’s withdrawal from the European Union.
Again in November 2020, Rishi Sunak, chancellor of the Exchequer remarked that Brexit supplied an inflection level for the U.Ok.’s monetary companies business. On the time, Sunak revealed that the federal government would prioritize harnessing novel fintech improvements like central financial institution digital currencies and stablecoins to make sure the nation retains tempo with the developments within the rising digital economic system.
As beforehand reported by Cointelegraph, the U.Ok. finance coverage division known as for public session on proposed guidelines for cross-border stablecoins again in January 2021.