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Reports are that the UK government is set to disclose the plans for crypto industry regulations in the upcoming weeks
As per the people keeping an eye on the matter, reports revealed that The UK Finance Ministry is set to reveal the new regulations expected to be crypto-friendly. Those new rules would provide a sort of clarity to fight the instability and uncertainty of existing rules and regulations.
Reports suggest that Treasury officials are willing to learn more about the crypto market. They also consult with prestigious crypto firms and trading groups, including crypto exchange Gemini. The crypto exchange and trading firms have issued their stablecoin pegged to the US dollar for its value. The usage of stablecoin launched by Gemini trespasses the vast crypto space, which is mostly covered by Tether, the largest stablecoin by supply and a market cap that is approx $80 billion, out of which it gained $76 billion in the past couple of years.
No matter how popular stablecoins are, regulators still raised concerns regarding them, saying that fiat currency reserves may not be sufficient to back the stablecoins. They have also raised concerns about their use by criminals to use them for laundering frauds and participating in such illicit activities. Details on the upcoming regulations are still being finalized, but the focus is clearly on stablecoins.
The Bank of England has called out regulators to minimize cryptocurrencies’ risks to financial stability. Bank of England Deputy Governor wrote a letter to numerous bank CEOs, citing the increased interest from financial institutions like banks and investment firms looking forward to entering distinct crypto markets. All of this came after calling out of US Federal Agencies by President Joe Biden to coordinate with the efforts on crypto regulations, assigning departments to Commerce research projects from Treasury on various topics that include the launch of a stablecoin assumed to be backed by the government itself.
Head of National Economic Council at the White House, Brian Deese, and National Security Advisor Jake Sullivan said that the latest executive order recognizes the administration’s policy priorities for cryptocurrencies and any upcoming US Central Bank Digital Currency. Many insiders in the crypto industry in the UK lack similar governmental coordination. However, the government made a list with the help of MIT in research regarding CBDCs.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
