Britain’s Crypto Regulation Plan

The U.K. government will soon reveal plans to regulate the cryptocurrency market, focusing on stablecoins.

Details of the plans are still being finalized; however sources say they are likely to be favorable to the industry, providing legal clarity for a sector that has so far been mostly lacking in regulation.

The department has been in discussions with a number of firms and trade groups.

Growth of Stablecoins

Stablecoins have seen exponential growth in terms of usage over the past few years.

Tether now has a total circulating supply of more than $80 billion — up from about $4 billion two years ago.

What British Government Concerns

Stablecoins tokens have also caused concern for regulators, who worry they may not be fully backed by an equivalent amount of reserves, and are being used for money laundering and other illicit activities.

Meanwhile, regulators are worried about possible exposure of the financial system to bitcoin and other digital currencies, as well as their potential use for evading sanctions imposed on Russia amid its invasion of Ukraine.

UK Crypto Status

The Bank of England (BOE) called for policymakers to expand regulatory frameworks to limit the risks posed by crypto to financial stability.

BOE saying there has been “increased interest” from banks and investment firms in “entering various crypto markets.”

The FCA said a “high number” of crypto businesses aren’t meeting the required anti-money laundering standards. Just 33 companies have made it onto the register. More than 80% firms assessed by the regulator have either withdrawn their applications or been rejected. **

There will be many firms would be failed to meet requirements by Government. So, in short term, there maybe some unclear situations UK market.

But this short-term chaos will be cleared out soon and then government and all crypto industry will and should prepare upcoming crypto decade. Even the crypto time is not yet started.