- The UK will legislate to bring certain stablecoins into its payments system, the Economic Secretary to the Treasury said Monday.
- John Glen announced the government will legislate stablecoins and enable stablecoin issuers and users to operate in the UK.
- He said the UK would look at regulating crypto like bitcoin as it aimed to set up a leading regulatory framework for crypto.
The UK will regulate stablecoins for payments, and is looking to broaden its rulemaking of the cryptocurrency sector to include bitcoin as well.
In a Monday speech at the Innovate Finance Global Summit, Economic Secretary to the Treasury John Glen announced that the UK will begin regulating crypto like stablecoins and look at regulating tokens like bitcoin.
“I can confirm that we will be legislating to bring certain stablecoins into our payments framework… creating the conditions for stablecoin issuers and service providers to operate and grow in the UK,” he said.
“This will also enable consumers to use stablecoin payment services with confidence… and the government will introduce this legislation, as part of an ambition to deliver a world-leading regulatory regime for stablecoins.”
Stablecoins will be brought within the scope of regulation, paving the way for them to be used in the UK as a recognised form of payment, the government said in a news release.
The UK government is taking a series of measures to regulate and utilise crypto in the country, among them tokens like bitcoin, in a bid to “make Britain a global hub for cryptoasset technology and innovation.”
“We think the market has changed sufficiently for us to look at regulating a broader set of crypto activities including trading of tokens like Bitcoin,” said Glen. “And we will consult on a world-leading regime for the rest of the crypto-market too… a regime that will facilitate safe and sustainable, and I hope rapid, innovation.”
Glen said the government sees significant potential in crypto and wants to take full advantage of it. Having proper regulation isn’t a detriment in that aim, he said.
“Having robust and effective regulation won’t hinder innovation, it’ll actually boost it, by giving people and businesses the confidence they need to think and invest for the long-term,” he said.
The government’s measures include establishing a Cryptoasset Engagement Group to work more closely with the industry and the FCA seeking views directly from industry participants on issues relating to the development of a cryptoasset regime.
Glen said regulation would not be rigid or static and said it would be refined and rewritten as needed.
“It’s my ambition to make the UK a global hub for cryptoasset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country,” said Finance Minister, Rishi Sunak.
Stablecoins are cryptocurrencies that are designed to maintain a stable price over time. They are often pegged to and backed by fiat currency, such as the US dollar.
