Today the UK government published a 46-page consultation document inviting response on potential regulatory approaches for cryptoassets and stablecoins. It’s planning a relatively light-touch approach for cryptoassets, in part because the sector is currently still niche and consumers appear to be aware of the significant speculation risk. However, it plans to bring stablecoins into the regulatory perimeter. That’s because of the potential for mainstream usage resulting in financial stability concerns, risks to consumers and impact on incumbents.
“The UK has long been recognised as a world-leader in financial technology. We are committed to maintaining this position,” said John Glen MP, Economic Secretary to the Treasury, in the foreword.
“In practice, that means creating a regulatory environment in which firms can innovate, while crucially maintaining the highest regulatory standards so that people can use new technologies reliably and safely. This is essential for confidence in the financial system more broadly.”
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