- The UK issues a consolidation regarding crypto market development.
- Reviews and comments accepted until March 2021
- The Main focus has been to ensure the public safety with the stablecoins
The ministry of economy of UKhas published a consolidation that contains regulations and procedures to be followed for the safety of digital assets and their righteous usage in the market. This consolidation paper mainly focuses on eradicating the threats faced by common people regularly on digital currency exchange and with the thought of expanding the UK crypto base.
AIM OF THE PAPER
This consolidation issued by the UK Treasury focuses on stablecoins whose value would remain intact with the market. With this, the consumers have a backup money system with them. And also these transactions are carried out with the help of blockchain technology that works on the distributed ledger system that keeps account of all the transactions safely and provides accountability to the customers.
It also focuses on providing a proper regulatory check on the stable coins to minimize the risks involved with crypto currencies and to provide a safer experience to the customers.
GLOBALLY ACCLAIMED THREATS
The use of stable coins involves both benefits and high risks. There are some loopholes that, if not considered, could pose serious risks to the economy, and that is why the use of stable coins has received many negative responses worldwide.
The UK Government has therefore issued these guidelines with a view to collecting points from various investors and economic institutions to create a safer transactional environment. The stage has been opened for comments to be made until March 2021, so that appropriate and necessary steps can be taken. This consolidation was the second issued by the UK Ministry of Economic Affairs, the first published in October last year. Both papers focus primarily on the development of crypto trading in the United Kingdom.
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