UK Government Approaches Crypto Industry to Provide Insights on Regulatory Approach

Suzat

January 13, 2021 1:23 pm

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The U.K. government has issued a document that shows a series of proposals addressing the crypto community. Through the approach, the Treasury is initiating a “regulatory approach to cryptocurrency and stablecoins” for 2021 following the Brexit turmoil.

The official announcement stated that the consultation largely targets stablecoins to gather investments and wholesale uses. The HM (Her Majesty) Treasury expects to collect insights from the “industry and stakeholders” in the crypto sphere until March 21, 2021.

In 2018, the British government launched a cross-authority taskforce to evaluate the impact of a “rapidly developing cryptocurrency market” in the economy. With such impulse, the HM Treasury wants to “ensure its regulatory framework is equipped to harness the benefits of new technologies, supporting innovation and competition, while mitigating risks to consumers and stability.”

The treasury explains in the document:

“Two years on, the landscape is changing rapidly. So-called stablecoins could pave the way for faster, cheaper payments, making it easier for people to pay for things or store their money. There is also increasing evidence that DLT could have significant benefits for capital markets, potentially fundamentally changing the way they operate.”

Secretary Glen commented in the document:

“The government will continue to actively monitor new and emerging risks as this market continues to mature. We will stand ready to take further regulatory action to ensure the market is working for the people and businesses who operate in it.”

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