Key takeaways
- The UK is set to introduce stablecoin legislation, according to Circle’s head of policy.
- Stablecoin regulations aim to bring the UK into compliance with EU MiCa standards.
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The UK government will soon introduce legislation to regulate stablecoins, Circle global head of policy Dante Disparte said in a recent interview with CNBC. He suggested that formal laws would be passed “in a few months, not a few years.”
According to Disparte, the government’s cautious approach may have been beneficial in light of scandalous crypto events like the FTX saga or the collapse of TerraUSD (UST), but the timely introduction of regulation on stablecoins is crucial for the UK to exploit their potential benefits. technology while mitigating risks.
In comparison, the European Union is actively working on a comprehensive regulatory framework for crypto assets, including stablecoins. Last year, the EU officially approved the Markets in Crypto-Assets (MiCA) Regulation, which aims to create a unified legal framework for crypto-assets across all EU member states. The MiCA Regulation is expected to be fully implemented by the end of this year.
Economic Secretary to the Treasury Bim Afolami said earlier this year that the UK government was committed to progressing legislation on stablecoins and crypto staking services.
“We are very clear that we want these things accomplished as quickly as possible,” he said.
Initially, plans were to introduce new legislation for stablecoins, crypto staking, exchange and custody by June or July, Afolami said at the Innovate Finance Global Summit in April.
There have been some delays, but progress is still being made. Once the regulatory framework is implemented, the Financial Conduct Authority (FCA) and the Bank of England will be responsible for overseeing it.
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