LONDON, Nov 5 (Reuters) – Bank of England Deputy Governor Sarah Breeden said on Wednesday it was “very important” that the United States and Britain were in sync on regulating stablecoins.
Breeden’s comments come less than a week before the BoE launches a consultation on the regulation of stablecoins – crypto-assets linked to a fiat currency or other reserve asset – which would soften previous proposals.
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Breeden confirmed reports that the consultation would be published on November 10.
“I’ve spoken to the Federal Reserve…The regulators there and our finance departments are working together,” Breeden said at the SALT conference in London.
The US and UK governments announced in September the creation of a joint working group aimed at strengthening collaboration on digital assets and capital markets.
The BOE’s proposals will only apply to “systemic” stablecoins, or those deemed capable of being widely used for payments. The rest will be regulated by the Financial Conduct Authority under a less strict regime.
The central bank has been criticized by the crypto industry for its plan to introduce limits on the amount of cryptoassets that individuals and businesses can hold, a proposal that has not been replicated in other major financial centers.
Reporting by Phoebe Seers and Nell Mackenzie Editing by Gareth Jones
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