UK To Regulate Stablecoins As the Treasury Introduces New Financial Bill

Many nations are reevaluating their regulations as a consequence of the shifting cryptocurrency industry and growing demand for the same.

While some nations—like India—revert to disregarding the possibility of financial development due to a complete lack of information, others—like the UK—change their minds and become more open to implementing new technology.

British Treasury Unveils a New Bill

Nadhim Zahawi, the new Treasury Minister and Chancellor of the Exchequer, introduced a new bill to Parliament called the "Financial Services and Markets Bill" that would make certain modifications to how the nation now conducts bitcoin business.

The Treasury's emphasis on stablecoins and the operation of the nation's regulators stand out among the numerous recommendations.

First, the law aims to control a number of stablecoins that are now accepted as payment methods, including Tether (USDT), USD Coin (USDC), and others.

The bill will also give the Bank of England the authority to restrict how the Financial Conduct Authority (FCA) regulates payments systems using digital settlement assets in the event that any of their regulatory actions have a negative impact on the nation's economy and/or cause financial instability.

The Chancellor referred to it as a "landmark day" for financial services in the UK and stated that by introducing this Bill, "we are repealing hundreds of pieces of burdensome EU regulations and seizing the benefits of Brexit to ensure the financial sector works in the interests of British people and businesses."

The UK advances its objective

Rishi Sunak, the previous Chancellor of the Exchequer, had announced in April that he intended to make the UK a centre for crypto technology; with the new law, Zahawi may be able to carry on that goal.

Sunak had said that the Finance Ministry will draft legislation to include stablecoins inside the legal framework, and the current Chancellor intends to accomplish just that with the Financial Services and Markets Bill, as reported by Top1markets.

The measure may undergo some revisions as it moves through the various stages before getting Royal Assent, given that it is just in its second reading in the House of Commons.