UK Treasury Strengthens Regulations Around Stablecoins Following UST Collapse
In response to the recent collapse of controversial crypto project Terra, Britain is looking into ways to ensure stablecoins don’t threaten their wider financial system. Her Majesty’s Treasury printed a new consultation paper on Tuesday, May 31, 2022, regarding minimizing the risks of the possible collapse of stablecoins and many more digital currencies by utilizing […]
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The British Treasury Department has affirmed its commitment to regulate stablecoins after the collapse of terrausd (UST) and terra (LUNA). “This will create the conditions for issuers and service providers to operate and grow in the U.K., whilst ensuring financial stability and high regulatory standards,” said an HM Treasury spokesperson.
Regulation of Stablecoins in the UK
HM Treasury, the U.K. Treasury Department, is moving forward with plans to regulate payment stablecoins despite a crypto market meltdown last week, The Telegraph reported Saturday.
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“If Congress does not enact legislation, the regulators will try to use what authority they have,” stated the U.S. Treasury official Nellie Liang. The United States Treasury made further hints at new laws for stablecoins on Dec. 17. Nellie Liang, the Under Secretary of the Treasury for Domestic Finance, fueled more stablecoin regulation speculation with comments on investors ‘potentially big risk’ when using stablecoins. Following on from the Financial Stability Oversight Council November 2021 report on stablecoins, the top official for financial oversight at the U.S Treasury stated that....
The parliament of Japan has approved a draft law tailored to regulate stablecoins in the country and protect investors. The new legislation is among the first to be introduced after the recent collapse of the algorithmic stablecoin terrausd.
Law on Stablecoins Approved in Japan in Aftermath of UST Collapse
Lawmakers in Japan have passed a bill designed to determine the legal status of stablecoins. The authors of the legislation have effectively defined these cryptocurrencies as digital money, Bloomberg reported following the vote on Friday.
With the new law, Japan....
Thomas Moser hinted that regulations might take time as the current regulations would wipe out the decentralized ecosystem like DeFi. Swiss National Bank (SNB) deputy head Thomas Muser talked to Cointelegraph editor Aaron Wood and discussed the ongoing trends in central bank digital currencies (CBDCs), stablecoins, and regulations, during the recently concluded European Blockchain Convention (EBC) 2022.Talking about the innovation and adoption of private stablecoins and plans of central banks regarding the CBDC launch, Moser said both could co-exist. He said that CBDC's function would be....
The U.K. government is focusing on stablecoins for the next phase of its development of crypto regulations.