In a kingdom where rain and change of prime ministers never stop, the UK government is setting a new ambitious goal – to take control of stablecoins – Bloomberg reports, citing Bim Afolami. Visiting the event hosted by Coinbase in rainy London, Afolami said:
We’re very clear that we want to get these things done as soon as possible. And I think over the next six months, those things are doable.
Sounds like he’s talking about UK postal delivery times, doesn’t it?
Analysts at Elliptic believe that fiat-backed stablecoins will play by the rules of existing payment laws. Such a decision will allow the UK financial regulator to claim its presence and influence which assets can back stablecoins.
Related: The ‘Britcoin’ Question Remains Wide Open
Tom Duff Gordon (vice president of international policy at Coinbase) predicts that cryptocurrency staking in the UK will soon cease to be just a group fun and will receive a new classification “that will avoid it being considered a collective investment,” he said.
When asked about broader regulation of cryptocurrencies, Afolami responded with as much certainty as the British weather. It appears that oversight of crypto exchanges and other service providers still remains at the “we’ll think about it” stage.
Political Games or Crypto Fishing on the Thames?
Let’s remember where it all began; back in October 2023, the Bank of England and the Financial Conduct Authority (FCA) announced their plans to take control of the cryptocurrency sector. A kind of “crypto fishing on the Thames”. According to CoinDesk data, they plan to carry out consultations on the rules for stablecoins and intend to introduce new regulations by 2025.
Seems like Afolami is not going to be left behind. He claimed that Britain is going to bring order to the crypto industry by the election year. It appears that the ruling Conservatives are tired of watching themselves fall behind Labor in the electoral race and have decided to take the regulatory issue into their own hands to score political points.
Looking back to 2022, when the new Prime Minister, Rishi Sunak, dreamed of turning Britain into a global crypto hub, the path to that dream has been a bit of a stretch. However, the Financial Services and Markets Act did reach King Charles’s approval in June 2023. In November, the government politely reminded crypto enthusiasts about taxes, inviting them to voluntarily disclose information and avoid fines.
More Info:
- The EU Takes the Fight Against Financial Crimes to Crypto Firms
- PayPal Halts UK Crypto Purchases: Navigating Regulatory Waves
While Great Britain is deciding how exactly to cut to the chase, the United States is preparing to pass a law on stablecoins. Tether has invested as much as $760,000 in lobbying for a bill on stablecoins. Apparently, the cryptocurrency race is gaining momentum, and the UK is not going to stay on the sidelines despite its conservatism.
After all, what you can’t ban must be regulated, right, Gentlemen?
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