UK moves closer to crypto regulation

The UK is expected to be the next major economy to announce the introduction of crypto regulation, according to speculation in the US.

The UK’s Chancellor of the Exchequer  Rishi Sunak has been talking about crypto more frequently recently and is expected to deliver some new regarding regulation.

The changes have not been officially confirmed by Sunak, but rather by a source who spoke anonymously to CNBC. There has been no comment from the UK treasury either.

Many officials have said they would be willing to work out and better understand how crypto works and how it may be implemented within a regulated framework.

A particular point of interest is stablecoins which base their entire value on currencies such as the US dollar, for example.

CNBC said that the treasury is already working with a number of private companies to gain the understanding it needs to work out a framework that would introduce clear-cut rules for the crypto ecosystem.

There have been several pain points for regulators to address globally. Stablecoins may prove to be a threat to financial stability, the IMF cautioned, due to their exposure to mainstream finance.

Meanwhile, the Bank of England deputy governor Sam Woods has addressed several bank CEOs cautioning them that there has been growing interest from banks and companies to enter the crypto sector.

For this to happen safely for all participants, clear regulatory rules must be established. While Sunak has said little on the recent rumor, the fact that the US is already pushing through an executive order signed by President Joe Biden is indication enough that the world’s biggest economies are ready to finally take a look at crypto more seriously.

In the meantime, you may use your crypto recreationally at 1xBit, FortuneJack or Bitcasino.

Source

Updated: 03/28/2022 — 14:00